Listing

Preferred equity investment securities are the securities under the Financial Instrument Trading Act and are issued by Cooperative Structured Financial Institutions based on “the Act on Preferred Equity Investment by Cooperative Structured Financial Institution”.
These securities are issued for the purpose of raising fund widely from the general public as a supplement of the ordinary equity from members of cooperative structured financial institutions, in order to enrich the equity capital at each institution.

Listing rules for preferred equity investment securities is basically as same as the one for stocks.

Outline of Criteria for Listing (1st Section& 2nd Section)
 
  • Cooperative structured financial institutions applying for initial listing are required to meet the formal listing criteria. These institutions shall be examined based on submitting documents, hearings, etc. from 5 viewpoints; corporate continuity and profitability, soundness of corporate management, effectiveness of corporate governance and internal management system of an enterprise, appropriateness of disclosure of corporate information, etc. and other matters deemed necessary from the viewpoint of the public interest or the protection of investors.
  • In addition, in case where the ordinary equity increases, possession equity of preferred equity investors regarding the net asset value, the net income, etc. is diluted. In the listing examination, regarding appropriateness of disclosure of corporate information, the institution is checked whether the risk and policy against dilution are described intelligibly in the “Securities Report for Initial Listing Application (Part I)”.
  • Besides, after a listing, the rules regarding disclosure of corporate information and the criteria for de-listing are basically same as the ones for stocks.