Criteria for Transfers

Formal Requirements(Alteration from Mothers)

As of Nov. 1, 2020
Criteria Alteration to 2nd section Alteration to 1st section
(1)Number of shareholders
(As of the alteration of listing market day)
400 or more 800 or more
(2)Tradable shares
(As of the alteration of listing market day)
  1. The number of tradable shares: 2,000 units or more
  2. The market capitalization of the tradable shares: 1 billion yen or more
  3. The number of tradable shares: 25% or more of the listed stocks,etc.
  1. The number of tradable shares: 20,000 units or more
  2. The market capitalization of the tradable shares: 10 billion yen or more
  3. The number of tradable shares: 35% or more of the listed stocks,etc.
(3)Market capitalization
(As of the alteration of listing market day)
- 25 billion yen or more
(4)Number of consecutive years of conducting business The business activities have been continuously carried out by setting up a board of directors since a day before the day which is three (3) years prior to the initial listing application day Same as on the left
(5)Amount of net assets
(As of the alteration of listing market day)
Positive 5 billion yen or more
(net assets on a separate basis should not be negative)
(6)Amount of profits and market capitalization Ordinary income in the most recent year is at least JPY 100 million The following a. or b. must be satisfied
  1. The total amount of profits in the last two (2) years are at least 2.5 billion yen
  2. The sales for the last year are at least 10 billion yen and the market capitalization as of the listing day is expected to reach at least 100 billion yen
(7)False statement or adverse opinion, etc. The following a. through d. must be satisfied
  1. No false statement is made in the securities reports, etc. which contain or make reference to financial statements, etc. for each business year or each consolidated accounting year which ended in the last 2 years or quarterly financial statements, etc. for a quarterly accounting period in each business year or for a consolidated quarterly accounting period in each consolidated accounting year;
  2. The audit report attached to financial statements, etc. for each business year or each consolidated accounting year which ended in the last 2 years contains an "unqualified opinion" or a "qualified opinion with exceptions" of certified public accountants, etc.; provided;
  3. The audit report attached to financial statements, etc. for the business year and consolidated accounting year which ended in the last year and a quarterly review report attached to quarterly financial statements, etc. for a quarterly accounting period in the business year which ended in the last year and a consolidated quarterly accounting period in the consolidated accounting year contain an "unqualified opinion" or an "unqualified conclusion" of certified public accountants, etc.; provided;
  4. Where a stock, etc. pertaining to an initial listing applicant is listed on any other financial instruments exchange in Japan, such stock, etc. shall not fall under the following (a) and (b):
    (a) The internal control report pertaining to the business year ending in the last year contains the fact that "appraisal results cannot be provided" contained in;
    (b) The internal control audit report regarding the internal control report pertaining toa business year ending in the last year contains the fact that "no opinion is provided".
Same as on the left
(8)Establishment of a shareholder services agent Shareholder services have been entrusted to an institution specified as the applicant’s shareholder services agent, or an informal consent of undertaking the entrustment of such shareholder services from the shareholder services agent has been received; provided, however, that the same shall not apply to a shareholder services agent approved by the Exchange Same as on the left
(9)Number of Shares in a Share Unit
(As of the day of assignment)
The Share Unit shall be expected to be 100 shares Same as on the left
(10)Classes of stock In the case that a stock, etc. pertaining to the application, such stock, etc. shall be, as a general rule, any of stocks referenced in the following a. through c. In this case, the applicant for the stock referenced in b. shall not have securities other than said stock as to which the applicant makes the application
  1. In the case of a company issuing one class of stock with voting rights, said stock with voting rights;
  2. In the case of a company issuing multiple classes of stock with voting rights, a class of stock with voting rights whose value of rights, etc. to receive economic benefits including claim for surplus dividend pertaining to the number of shares that enables exercise of one voting right at a general shareholders meeting with regard to important matters including selection and dismissal of board members is higher than any other class of stock;
  3. Stock with no voting rights
Same as on the left
(11)Restriction on transfer of shares Transfer of shares pertaining to an initial listing application is not restricted or it is expected that there will be no restriction by the time of listing; provided, however, that the same shall not apply to cases where transfer of shares is restricted pursuant to the provisions of special laws at the same time the details of the restriction are deemed not to hinder trading in the market of the Exchange Same as on the left
(12)Handling by the designated book-entry transfer institution The relevant issue is subject to the book-entry transfer operation of the designated book-entry transfer institution, or is likely to be so by the time of listing Same as on the left
(13)Expected implementation of merger, etc The merger, etc. shall not fall under the following a. and b.:
  1. Where a merger, demerger, making other company a subsidiary or making a subsidiary a non-subsidiary or transfer of a business to or from other entity is scheduled to be carried out on or after the application day and within 2 years from the end of the most recent business year before such day, and, in addition, where the Exchange deems that an applicant will cease to be a substantial surviving company by such an act; provided;
  2. Where a merger in which an applicant becomes a dissolution company,a stock swap or a stock transfer whereby it becomes a wholly-owned subsidiary of another company is expected to be carried out within 2 years from the end of the business year immediately prior to the business year containing the application day
Same as on the left

Eligibility Requirements

As of Nov. 1, 2020
Criteria Eligibility Requirements
Corporate continuity and profitability (To 1st Section) A business is operated continuously and a stable and excellent revenue base is present
(To 2nd Section) A business is operated continuously and a stable revenue base is present
Soundness of corporate management A business is carried out fairly and faithfully
Effectiveness of corporate governance and internal management system of an enterprise Corporate governance and internal management system are properly prepared and functioning
Appropriateness of disclosure of corporate information, etc The applicant is in a status where disclosure of the corporate information, etc. may be carried out in an appropriate manner
Other matters deemed necessary by the Exchange from the viewpoint of the public interest or the protection of investors -

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