Criteria for Transfers

Formal Requirements(Alteration from Mothers)

Criteria Alteration to 1st section from Mothers
(The following A or B must be satisfied)
Alteration to 2nd section from Mothers
A B
Number of shareholders
(As of the alteration of listing market day)
2,200 or more 800 or more
Tradable shares
(As of the alteration of listing market day)
(All of the following a. through c. must be satisfied)
  1. The number of tradable shares: 20,000 units or more
  2. The market capitalization of the tradable shares: \ 2 billion or more
  3. Ratio of tradable shares to listed shares: 35% or more
(All of the following a. through c. must be satisfied)
  1. The number of tradable shares: 20,000 units or more
  2. The market capitalization of the tradable shares: \ 1 billion or more
  3. Ratio of tradable shares to listed shares: 35% or more
(All of the following a. through c. must be satisfied)
  1. The number of tradable shares: 4,000 units or more
  2. The market capitalization of the tradable shares: \ 1 billion or more
  3. Ratio of tradable shares to listed share : 30% or more
Trading Volume The average monthly trading volume for each of the last 3 months and the preceding 3 months shall be at least 200 units - -
Market capitalization
(As of the alteration of listing market day)
\ 4 billion or more \ 25 billion or more \ 2 billion or more
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 3 years prior to the end of a business year immediately prior to the business year containing the listing market alteration application day.
Amount of net assets
(As of the alteration of listing market day)
\ 1 billion or more  (net assets on a separate basis should not be negative)
Amount of profits and market capitalization The following a. or b. must be satisfied.
  1. The total amount of profits in the last 2 years shall be at least \ 500 million;
  2. The market capitalization as of the listing market alteration day is expected to reach at least \ 50 billion, except cases where sales for the last year are less than \ 10 billion
    (Except cases where sales for the last year are less than \ 10 billion.)
False statement or adverse opinion, etc.
  1. A listed company makes no false statement in the securities report, etc. which contains or makes reference to financial statements, etc. for each business year or each consolidated accounting year or quarterly financial statements, etc. for a quarterly accounting period in each business year or for a quarterly consolidated accounting period in each consolidated accounting year which ended in the last 5 years;
  2. The audit report of a listed company attached to financial statements, etc. for each business year or each consolidated accounting year and a quarterly review report of the listed company attached to quarterly financial statements, etc. for a quarterly counting period in each business year or for a consolidated quarterly accounting period in each consolidated accounting year which ended in the last 5 years contain an "unqualified opinion", a "qualified opinion with exceptions", "an unqualified conclusion" or a "qualified conclusion with exceptions" of certified public accountants or an audit firm; provided;
  3. The listed company shall not fall under the following (a) and (b):
    (a) The internal control report pertaining to a business year ending in the last year
    contains the fact that "appraisal results cannot be provided"; and
    (b) The internal control audit report regarding an internal control report pertaining to a business year ending in the last year contains the fact that "opinions are not expressed"
  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".
Establishment of a shareholder services agent Shareholder services have been entrusted to an institution specified as the applicant’s shareholder services agent
Number of Shares in a Share Unit
(As of the day of assignment)
100 shares
Restriction on transfer of shares Transfer of shares pertaining to an application is not restricted
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
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.

Eligibility Requirements

Criteria Eligibility Requirements
Corporate continuity and profitability 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 -

For Securities Listing Regulations and Related Rules etc., please refer to the following webpage:

Securities Listing Regulations and Related Rules
New Listing Guidebook