Listing

Listing Regulations of Preferred Stocks, etc.

The listing rules of a preferred stock, etc. that means a non-participating preferred stock and subsidiary-linked dividend stock are prescribed in PART3 of Securities Listing Regulations.

Initial Listing

In order to listing a preferred stock, etc. , it is necessary that conditions of issuance etc. meet the criteria prescribed by PART3 of Securities Listing Regulations.
A listing preferred stock etc. will be categorized to same section of the common stock of its issuer.

Criteria Securities Listing Regulations
Status of the issuer An issuer of a security for which an initial listing application is made is an issuer of a listed stock with voting rights.
Profitability An issuer of a security for which an initial listing application is made is expected to record profits sufficient to pay surplus dividend pertaining to such security.
Appropriateness of disclosure of corporate information, etc. An issuer is in a status where disclose of the corporate information, etc. may be carried out in an appropriate manner.
Number of shareholders The number of holders of a listed preferred stock, etc. of more than 1 unit is expected to reach 800 or more by the time of listing.
Tradable shares Number of tradable shares The number of tradable shares is expected to reach 4,000 units or more by the time of listing.
Market capitalization of the tradable shares The market capitalization of tradable shares as of the listing day is expected to reach 1 billion yen or more.
Ratio of tradable shares to listed shares The number of tradable shares is expected to reach 30% or more of the listed preferred stock, etc. by the time of listing.
Handling by the designated book-entry transfer institution Such security 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.
Restriction on transfer of shares Transfer of a preferred stock, etc. pertaining to an initial listing application is not restricted.
Others Other matters deemed necessary by the Exchange from the viewpoint of the public interest or the protection of investors.

Timely Disclosure

Timely disclosure carried out by an issuer of a listed preferred stock, etc. shall be as prescribed by PART3 of Securities Listing Regulations in addition to Part 2, Chapter 4, Section2 of the same regulations.

Information to be disclosed is as follows.

  • An issuer of a listed preferred stock, etc. which may be acquired by the issuer as prescribed by a provision shall, where the details of accounts are disclosed on the basis of the provisions of Rule 404 of Securities Listing Regulations, disclose the details of a policy of such acquisition as well.
  • Where a body which decides the business execution of an issuer of a listed preferred stock, etc. as in the preceding paragraph decides to change its policy of an acquisition last publicly announced, the body shall disclose the details immediately pursuant to the provisions of the Enforcement Rules for Securities Listing Regulations.
  • Where a body which decides acquisition of own stock(Part 2, Chapter 4, Section2 of Securities Listing Regulations).
 

( In case of subsidiary-linked dividend stock )

  • Where a body which decides the business execution of a subject subsidiary decides important matters concerning operation, business or assets or a subsidiary-linked dividend stock (including cases where the body decides not to carry out a matter pertaining to such decision).
  • Where an important fact concerning operation, business or assets of a subject subsidiary or a subsidiary-linked dividend stock arises.
  • Where the details of account settlement of a subject subsidiary’s business year or cumulative quarterly period, or consolidated accounting year or consolidated cumulative quarterly period are fixed.
  • Where there occurs a difference (limited to those falling under the criteria specified by the Enforcement Rules as matters which have a material impact on investment decisions of such listed subsidiary-linked dividend stock) in estimated value newly calculated by such subject subsidiary or accounts for such business year compared to the last published estimated value (where there is not such value, published actual value for the previous business year) with respect to sales, operating profits, ordinary profits or net income of such subject subsidiary.
  • An issuer of a listed subsidiary-linked dividend stock shall disclose matters concerning a controlling shareholder, etc. as prescribed by the Exchange pertaining to such subject subsidiary, where the issuer discloses the details of accounts pertaining to a business year.
  • Where a body which decides the business execution of a consolidated subsidiary of a subject subsidiary decides important matters concerning operation, business or assets or a subsidiary-linked dividend stock (including cases where the body decides not to carry out a mater pertaining to such decision).
  • Where an important fact concerning operation, business or assets of a consolidated subsidiary of a subject subsidiary company or the subsidiary-linked dividend stock arises.

Delisting

If a preferred stock etc. loses eligibility (for example, market liquidity of the securities has been too low to assure fair price formation or a common stock of its issuer is delisted based on PART2, CHAPTER6 of Securities Listing Regulations), it will be delisted.

Delisting criteria are as follows.

Criteria Securities Listing Regulations
Violation, etc. of the listing agreement* In cases that a issuer carries out a material breach concerning a listing agreement pertaining to a preferred stock, etc.
Delisting of the common stocks* Where a stock, etc. issued by the issuer of a listed preferred stock, etc. falls under the criteria prescribed in PART2, CHAPTER6 of Securities Listing Regulations.
Number of Shareholders Less than 400 (1 year grace period applies)
Tradable shares Number of tradable shares Less than 2,000 units (1 year grace period applies)
Market capitalization of the tradable shares Less than ¥500 million (1 year grace period applies)
Ratio of tradable shares to listed shares Less than 5% (excluding cases where predetermined documents are submitted) (No grace period)
Expiration of the remaining period Where the remaining period of a preferred stock, etc. reaches its maturity.
Trading Volume Where the average monthly trading volume of a listed preferred stock, etc. for each year ending December 31 is less than 10 units.
No trades Where no trade has been made for 3 months till the end of every month.
Market Capitalization In the event that said market capitalization of a listed preferred stock, etc. is less than a value obtained by multiplying the number of the listed preferred stocks, etc. by 2, it does not reach at least said value within 3 months.
Not to be handled by the designated book-entry transfer institution Where such security ceases to be subject to the book-entry transfer operation of the designated book-entry transfer institution.
Others Where the Exchange deems that delisting of such security is appropriate for the public interest or the protection of investors.

  • Where an issuer of a listed preferred stock, etc. falls under any of the these criteria, all securities such as preferred stocks, etc. issued by such issuer shall be delisted.

Trading

Please refer to the following hyperlink destination about the trading rules of a listed preferred stock, etc.

Trading (Domestic Stocks) - Overview