Overview of Section Transfers

Formal Requirements

Assignment to the 1st Section

  Requirement
Number of Shareholders 2,200 or more
Tradable shares  
  • The number of tradable shares
20,000 units or more
  • Market capitalization of tradable shares
¥2,000 million or more
  • The number of tradable shares (as a percentage of the total number of shares of listed stock, etc.)
35% or more
Trading Volume The average monthly trading volume for each of the last three months and three months preceding such last three months be at least 200 units
Market Capitalization ¥4,000 million or more
Amount of net assets ¥1,000 million or more
(net assets on a separate basis are not negative)
Amount of profits or market capitalization(Profits represent) The following a. or b. must be satisfied.
  • The total amount of profits in the last two years shall be at least ¥ 500 million or more;
  • The value of sales for the recent one year is ¥10,000 million or more and the market capitalization is expected to reach at least ¥50,000 million.
False statement or adverse opinion, etc.
  • No false statement is made in the securities reports, etc. for each of business years ended during the last five years
  • The unqualified opinions or the qualified opinions with exceptions on financial statements, etc. for each business years ended during the last five years
The applicant shall not meet (a) or (b) below:
  • The internal management report for the business year which ends during the recent one year contains the statement that “assessment results will be refrained from being expresses.”
  • The internal management audit report for the business year which ends during the recent one year contains the statement that “no opinion will be expressed.”

Reassignment from Mothers

  From Mothers to the 2nd section From Mothers to the 1st section
On the basis of market capitalization On the basis of sales amount
Number of Shareholders 800 or more 2,200 or more
Tradable shares    
  • The number of tradable shares
4,000 units or more 20,000 units or more
  • Market capitalization of tradable shares
¥1,000 million or more ¥2,000 million or more
  • The number of tradable shares
30% or more as a percentage of listed shares 35% or more of the total number of share of stock, etc.
Trading Volume - - The average monthly trading volume for each of the last three months and three months preceding such recent three months be at least 200 trading units
Market Capitalization ¥2,000 million or more ¥ 25,000 million or more ¥4,000 million or more
Number of consecutive years of conducting business An applicant has established its Board of Directors and continued its operation for three years or more.
Amount of net assets ¥1,000 million or more (it must not be negative on a separate basis)
Amount of profit or market capitalization Either of a. or b. below is met.
  • The amount of profit for the last two years is ¥500 million or more.
  • The sales for the recent one year is ¥10,000million or more and the market capitalization is expected to be ¥50,000 million or more.
False statement or adverse opinion, etc.
  • No false statement is made in the securities reports, etc. for each of business years which ends during the last two years
  • No false statements in Securities Reports for the year ended during the last five years are identified.
  • The audit opinions on financial statements, etc. for each business years which ended during the last two years (excluding the business year ended during the recent one year) represent an "unqualified opinion" or a "qualified opinion with exceptions”
  • The audit opinion on financial statements, etc. for the business year ended during the recent one year represents “unqualified opinion”, in principle.
  • An "unqualified opinion" or a "qualified opinion with exceptions” for the last five years
  • Either of (1) and (2) below is not met.
  • Either of (a) and (b) below is not met.
(a) The internal management report for the business year ended during the last year contains the statement that “assessment results will be refrained from being expressed.”
(b) The internal management audit report for the business year ended during the last year contains the statement that “no opinion will be expressed.”

Reassignment to the 1st and 2nd sections from JASDAQ

  From JASDAQ to the 2nd section From JASDAQ to the 1st section
Number of Shareholders 800 or more 2,200 or more
Tradable shares    
  • The number of tradable shares
4,000 units or more 20,000 units or more
  • Market capitalization of tradable shares
¥1,000 million or more
  • The number of tradable shares
30% or more as a percentage of listed shares 35% of the total number of shares of stock, etc.
Trading Volume -
Market Capitalization ¥2,000 million or more ¥ 25,000 million or more
Number of consecutive years of conducting a business Years An applicant has established its Board of Directors and continued its operation for three years or more.
Amount of net assets ¥1,000 million or more
(net assets on a separate basis are not negative)
Amount of profit or market capitalization Either of a. or b. below is met.
  • The amount of profit for the last two years is ¥500 million or more.
  • The sales for the last year is ¥10,000 million or more and the market capitalization is expected to be ¥50,000 million or more.
False statement or adverse opinion, etc.
  • No false statement is made in the securities reports, etc. for each of business years which end during the recent two years.
  • The audit opinions on financial statements, etc. for each business years which ended during the recent two years (excluding the business year which ends during the recent one year) represent an "unqualified opinion" or a "qualified opinion with exceptions”
  • The audit opinion on financial statements, etc. for the business year which ends during the recent one year represents “unqualified opinion”, in principle
  • Either of (a) and (b) below is not met.
    (a) The internal management report for the business year ended during the recent one year contains the statement that “assessment results will be refrained from being expressed.”
    (b) The internal management audit report for the business year ended during the recent one year contains the statement that “no opinion will be expressed.”

Details of Requirements for Listing Examination

to 1st Section
To the Second Section from the First Section
From Mothers to Main Markets
From JASDAQ to Main Markets