Criteria for Delisting

1st Section and 2nd Section Domestic Stocks

Items Delisting Criteria (1st Section/ 2nd Section)
Number of Shareholders
(Note 1)
Less than 400 (1 year grace period applies)
Tradable Shares Number of tradable shares
(Note 2)
Less than 2,000 units (1 year grace period applies)
Market capitalization of tradable shares
(Note 3)
Less than ¥ 500 million (1 year grace period applies)
Ratio of tradable shares
(Note 4)
Less than 5% (excluding cases where predetermined documents are submitted) (no grace period)
Market Capitalization
(Note 5)
  1. In the event that it is less than ¥ 1 billion, it does not increase to ¥ 1 billion or above within 9 months (or within 3 months if predetermined documents are not submitted)
  2. or
  3. In the event that it is less than 2 times of the listed number of shares, it does not increase to said value within 3 months
Liabilities Liabilities exceed assets and this state remains unchanged for 1 year (as a general rule, based on consolidated balance sheets)
Trading Volume
  1. For the last year: Average monthly trading volume: less than 10 units,
  2. or
  3. No trades during the last 3 months
Delay in Submission of Securities Report, etc. A securities report or a quarterly report, to which an audit report or a quarterly review report is attached, is not submitted within a month after the statutory deadline
(or, if the extension of the deadline for submission of a securities report or a quarterly report has been approved, and it is not submitted by the 8th day (excluding non-business days) after such extended deadline)
False Statement or Adverse Opinion, etc.
  1. In the event that a listed company has made false statements in a securities report, etc., and TSE deems that it is clearly difficult to maintain order in the market if the listed company is not delisted immediately; or
  2. In the event that a certified public accountant, etc. expresses an "adverse opinion" or the fact that "opinions are not expressed", etc. in an audit report or quarterly review report, and TSE deems that it is clearly difficult to maintain order in the market if the listed company is not delisted immediately
Securities on Alert, etc.
  1. Although a listed company falls under the criteria for designation as a security on alert, TSE deems that it is not expected to improve its internal management system, etc.;
  2. A listed company is already designated as a security on alert, and TSE deems that it can no longer be expected to improve its internal management system, etc.; or
  3. TSE deems that the listed company has not improved its internal management system, etc. despite its designation as a security on alert.
Violation of Listing Agreement, etc. A listed company has committed a material violation of the listing agreement; a listed company has committed a material violation of the matters taken on oath in the Written Oath for Initial Listing, etc.; or a listed company ceases to be a party to the listing agreement
Others Suspension of bank transactions, bankruptcy/rehabilitation/reorganization proceedings, suspension of business activities, inappropriate merger, etc., impairment of soundness of transactions with a controlling shareholder(in case of change in the controlling shareholder due to a third-party allotment), ceasing to delegate shareholder services to an agent, restriction on transfer of shares, becoming a wholly-owned subsidiary, ceasing to be subject to handling by the designated book-entry transfer organization, unreasonable restrictions on shareholders' rights, acquisition of all shares, acquisition due to demand for share, etc. cash-out, involvement of anti-social forces, and others (public interest and investor protection)

Note:

  1. "Number of shareholders" refers to the number of persons who own at least 1 unit of shares, etc. (For more information, please refer to the criteria in “Number of shareholders".)
    Number of Shareholders
  2. "Number of tradable shares" refers to listed stocks, etc. excluding shares owned by persons holding at least 10% of the number of listed shares as well as other shares specified by the TSE enforcement rules regarding listing as having little liquidity. (For more information, please refer to the criteria in “Number of Tradable Shares“.)
    Number of Tradable Shares
  3. "Market capitalization of tradable shares" refers to the amount obtained by multiplying the closing price in the TSE auction market on the last day of the listed company's business year by the number of tradable shares as of that day.
  4. "Ratio of tradable shares" refers to the percentage of tradable shares as of the last day of the listed company's business year in the total number of listed shares, etc.
  5. "Market Capitalization" is the average monthly market capitalization (the average of the amounts obtained by multiplying the closing prices in auction trading at TSE by the number of shares listed on the market on each day) or the market capitalization at the end of the month (the amount obtained by multiplying the closing price at the end of the month in auction trading at TSE (if there is no closing price, the most recent closing price will be used) by the number of listed shares at the end of the month). (For more information, please refer to the criteria in “Market Capitalization“.)
    Market Capitalization