JAKARTA (Oct 22): Stocks of Indonesian companies with high shareholding concentrations will be excluded from the Jakarta composite index starting from Nov 2, according to an announcement by the country's stock exchange on Thursday.

The exclusion is part of Indonesia's capital market reforms, and comes after index provider MSCI warned it could demote Indonesian equities from "emerging" to "stand-alone" market status.

MSCI has raised concerns that some transactions were allegedly being manipulated by dominant shareholders.

The stock exchange (IDX) previously said there were 80 stocks on the high shareholding concentration list, accounting for roughly 18% of the total index weight.

IDX said it would now recalculate the Jakarta composite index every January, April, July and October.

The regular index evaluations previously took place in March, June, September and December.

Stocks added to or removed from the high shareholding concentration list outside the evaluation period will be immediately reflected in the Jakarta composite index, the exchange said.

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