Criteria for Delisting

Criteria for Number of Tradable Shares (Distribution Status)

Update : May 12, 2008

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List of Criteria for Tradable Shares

  • Criteria for the number and market capitalization of tradable shares differ according to market.
  • A one-year grace period is not applied to the criterion for the ratio of tradable shares.
  • The TSE conducts examinations based on the "share distribution table" and "securities report".
  • The TSE conducts examinations of the status of tradable shares as of the last day of each business year (usually, the TSE conducts examinations once a year and not for the interim period).

Definition of Number of Tradable Shares

(1) The number of listed shares includes the number of own shares.
(2) Officers include directors, accounting advisors, auditors, and executive officers in the event of a company with committees. This number also includes shares held in the officer share-ownership plan. Executive officers who are not directors at a company adopting an executive officer system are excluded.
(3) In the event of a resolution for the disposition of own shares, the number of the shares is subtracted.
(4) Out of these stocks, the following are included in tradable shares.

Handling of shares held by those who individually own 10% or more of the number of listed shares

Out of shares held by those who individually own 10% or more of the listed shares, stocks deemed as "tradable shares" are as follows.

Stocks deemed as tradable shares Documents to be submitted
Stocks that are invested in investment trusts or pension trusts "Table for shares invested in investment trusts, etc." which are sent from shareholder services agents
Other stocks included in trusts whose purpose is to be invested based on investment discretionary contracts, etc. Certification issued by the nominee trust bank assuring that the shares are the ones described on the left column
Out of the stocks held by securities finance companies or financial instruments firms, those stocks related to margin trading Certification issued by the nominee assuring that the shares are the ones for margin trading

Definitions of ratio / market capitalization of tradable shares

(1) The definition of the number of tradable shares is the same as the previous item.
(2) The number of listed shares includes own shares.
(3) The final price of the stocks (the most recent execution price on the previous day or before if no final price is quoted) during trading sessions at the TSE on the last day of the business year

Example of grace period schedule (number / market capitalization of tradable shares)

Example of grace period schedule (reassignment)(In the event that the number of tradable shares is less than 10,000 / market capitalization of tradable shares is less than JPY 1 billion)

Example of grace period schedule (Delisting)(In the event that the number of tradable shares falls below 2,000 / market capitalization of tradable shares falls below JPY 500 million)

Criteria for returning issues from a grace period(Criteria for the number / market capitalization of tradable shares)

The number / market capitalization of tradable shares meets the criteria as of the record date, etc.

* "Record date, etc." refers to the record date for the end of the first half of the business year, stock splits, etc.

The number / market capitalization of tradable shares meets the criteria by public offering / secondary offering or distribution with a quantitative restriction.

* To calculate the market capitalization of tradable shares, the TSE uses the final price (the most recent execution price on the previous day or before if there is no final price) of the stock, etc. during TSE trading sessions on the day when the public offering / secondary offering or distribution with a quantitative restriction is made.

Example of delisting(In the event that the ratio of tradable shares is less than 5%)

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