JAKARTA (Oct 20): Indonesia's market operator further tightened stock selling restrictions on Tuesday as authorities race to contain a record-breaking rout triggered by MSCI threatening to strip the country of "emerging market" status and expel it from global indexes.

The Indonesia Stock Exchange already halved stock price down limits from 15% to 7% on Monday as the broad Jakarta Composite index dropped 16% in two sessions, the steepest drawdown on LSEG records going back to 1990.

On Tuesday, a one rupiah (US$0.0001) down limit, which had applied to stocks worth 10 rupiah apiece or less, was extended to stocks worth 14 rupiah and below.

Sell orders below limit-down prices are automatically rejected by the bourse's trading system. The IDX said on Monday that the moves aimed to "mitigate market volatility".

MSCI proposes downgrading Indonesia's equity market from "emerging" to "standalone" status, which would mean no offsetting inflow from "frontier" funds and trigger more than US$5 billion in outflow, according to Goldman Sachs

The Jakarta Composite index steadied on Tuesday.

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