Listing on Tokyo Stock Exchange Only
Failing to Meet the Continued Listing Criteria
A listed company shall be delisted if it continues to fail to meet the Continued Listing Criteria one year (six months in the case of the trading volume of the Continued Listing Criteria) (*1), in principle, after it first fails to meet the Continued Listing Criteria (Rule 602, Paragraph 1 of the Securities Listing Regulations).
A listed company is required to submit a plan specifying actions and a schedule for meeting the Continued Listing Criteria within one year (six months in the case of the trading volume of the Continued Listing Criteria) (*1), in principle, from when it first fails to meet the Continued Listing Criteria. When a listed company fails to conform to the criteria for "Trading Value/Trading Volume," "Market Capitalization," or "Amount of Net Assets", it is required to submit this plan within three months of first failing to meet the criteria, or for "Number of Shareholders" or "Tradable Shares," within six months.
- Among the criteria set out in the Continued Listing Criteria, a special exemption is allowed for "Amount of Net Assets." For more details, please refer to Amount of Net Assets under Details of Continued Listing Criteria, which is under Listing (Domestic Stocks).
Transitional Measures
A listed company that fall under the following categories will have transitional measures related to the Continued Listing Criteria applied for the time being.
- Companies listed as of April 3, 2022, excluding companies that fall under the following items:
- Companies that underwent examination procedures on the same level as the initial listing examination when selecting a new market segment
- Companies that transfer to a different market segment on or after April 4, 2022
- Companies designated as Securities on Alert as of April 3, 2022, or companies designated as Securities on Alert or Securities on Special Alert on or after April 4, 2022
- In cases of companies that fail to meet the Continued Listing Criteria, companies that disclose a plan stating their actions towards meeting the Continued Listing Criteria and the implementation schedule of those actions, and report on the progress of this plan within three months (*2) or six months (*3) from the end of the fiscal year.
- Three months if it does not meet the criteria for "Trading Value/Trading Volume," "Market Capitalization," or "Amount of Net Assets."
- Six months if it does not meet the criteria for "Number of Shareholders" or "Tradable Shares."
The Continued Listing Criteria to be applied as transitional measures are as follows.
Items (*4) |
Continued Listing Criteria Applied as Transitional Measures |
Prime Market |
Standard Market |
Growth Market |
Number of Shareholders |
800 or more |
150 or more |
150 or more |
Tradable Shares |
a. Number of tradable shares: 10,000 units or more b. Tradable share market capitalization: JPY 1 billion or more |
a. Number of tradable shares: 500 units or more b. Tradable share market capitalization: JPY 0.5 billion or more |
a. Number of tradable shares: 500 units or more b. Tradable share market capitalization: JPY 0.25 billion or more |
Trading Volume |
Average monthly trading volume over six months: 40 units or more |
Average monthly trading volume over six months: 10 units or more |
Average monthly trading volume over six months: 10 units or more |
Market Capitalization |
- |
- |
JPY 0.5 billion or more (applicable from 10 years after initial listing) |
Amount of Net Assets |
The amount of net assets is a positive figure. |
- For more details on each item, please refer to Details of Continued Listing Criteria under Listing (Domestic Stocks).
If a listed company fails and continues to fail to meet the Continued Listing Criteria applied as transitional measures, it shall be delisted one year (six months in the case of the trading volume of the Continued Listing Criteria ), in principle, after it first failed to meet the Continued Listing Criteria applied as transitional measures.
Other Delisting Criteria
A listed company which falls under any of the following shall be delisted (Rule 602, Paragraph 1, Items 2 through 5 of the Securities Listing Regulations).
Items |
Continued Listing Criteria Applied as Transitional Measures |
Prime Market |
Standard Market |
Growth Market |
Handling by Designated Book-Entry Transfer Institution |
Cases where the listed company is excluded from the custody and book-entry transfer operation for listed foreign stocks, etc., or the book-entry transfer operation for foreign stock trust beneficiary certificates, etc., conducted by the designated book-entry transfer institution |
Restriction on Transfer of Stocks, etc. |
Cases where the listed company places restrictions on the transfer of listed foreign stocks, etc. |
Expiry of Deposit Agreement, etc. |
If the listed company is the issuer of listed foreign stock depositary receipts, cases where the deposit agreement and other agreements expire |
Other |
Suspension of bank transactions, bankruptcy/rehabilitation proceedings or reorganization proceedings, suspension of business activities, inappropriate mergers, etc., a delay in submission of annual or quarterly securities reports, false statements or adverse opinions, etc., violation of listing agreement, etc., conversion to a wholly-owned subsidiary, inappropriate restrictions on shareholders' rights, acquisition of all shares, acquisition by request for sale of shares, etc., share consolidation, involvement of anti-social forces, and others (cases where delisting is deemed appropriate for public benefits or investor protection) |
Multiple Listings on Tokyo Stock Exchange and Other Exchange(s)
Failing to Meet the Continued Listing Criteria
A listed company shall be delisted if it continues to fail to meet the Continued Listing Criteria one year, in principle (*5), after it first failed to meet the Continued Listing Criteria (Rule 602, Paragraph 2, Item 1 of the Securities Listing Regulations).
A listed company is required to submit a plan specifying actions and a schedule for meeting the Continued Listing Criteria within one year (*5), in principle, from when it first failed to meet the Continued Listing Criteria. When a listed company has failed to meet the criteria for "Trading Status" it is required to submit this plan within six months of first failing to meet the criteria, or for "Amount of Net Assets," three months.
- Among the criteria set out by the Continued Listing Criteria, a special exemption is allowed for "Amount of Net Assets." For more details, please refer to Details of Continued Listing Criteria under Listing (Domestic Stocks).
Other Delisting Criteria
A listed company which falls under any of the following shall be delisted (Rule 602, Paragraph 2, Items 2 through 3 of the Securities Listing Regulations).
Items |
Continued Listing Criteria Applied as Transitional Measures |
Prime Market |
Standard Market |
Growth Market |
Delisting from Foreign Financial Instruments Exchanges, etc. |
Cases where delisting of listed foreign stocks, etc. from foreign financial instruments exchanges, etc. has been decided, or when TSE deems that real-time market quotations for said listed foreign stocks, etc. cannot be obtained from foreign financial instruments exchanges, etc. |
Handling by Designated Book-Entry Transfer Institution |
Cases where the listed company is excluded from the custody and book-entry transfer operation for listed foreign stocks, etc., or the book-entry transfer operation for foreign stock trust beneficiary certificates, etc., conducted by the designated book-entry transfer institution |
Restriction on Transfer of Shares, etc. |
Cases where the listed company places restrictions on the transfer of listed foreign stocks, etc. |
Expiry of Deposit Agreement, etc. |
If the listed company is the issuer of listed foreign stock depository receipts, cases where the deposit agreement and other agreements expire |
Other |
Suspension of bank transactions, bankruptcy/rehabilitation proceedings or reorganization proceedings, suspension of business activities, inappropriate merger, etc., a delay in submission of annual or quarterly securities reports, false statements or adverse opinions, etc., violation of listing agreement, etc., conversion to a wholly-owned subsidiary, inappropriate restrictions on shareholders' rights, acquisition of all shares, acquisition by request for sale of shares, etc., share consolidation, involvement of anti-social forces, and others (cases where delisting is deemed appropriate in terms of the public interest or investor protection) |