Criteria for Delisting

Summary of Criteria for Delisting of JASDAQ-Listed Stocks

Update : Nov. 29, 2013

print

JASDAQ Domestic stocks

  Criteria for Delisting of Stocks listed on JASDAQ
Items Number of Shareholders(Note 1) Less than 150 (1 year grace period applies)
Tradable Shares Number of tradable shares (Note 2) Less than 500 units (Note 3) (1 year grace period applies)
Market Capitalization of tradable shares(Note4) Less than ¥250 million (Less than ¥150 million, as a temporary measure until the end of Mar. 2014)
(1 year grace period applies)
Corporate Performance

The operating income (Note 6) and the cash flow in operating activities (Note 7) for the 4 most recent consolidated fiscal years (Note 5) are negative and this state is not resolved within 1 year.

*For a company listed on JASDAQ Growth, excluding cases where the 4 most recent consolidated fiscal years includes the 5 fiscal years prior to the fiscal year following that in which the company made its listing application (i.e., excluding JASDAQ Growth-listed companies in the first consolidated fiscal year following that of the listing application).

Stock Price (Note 8) In the event that it is less than \10, it does not increase to \10 or above within 3 months
Liabilities Liabilities exceed assets and this state remains unchanged for 1 year (as a general rule, based on consolidated balance sheets)
Profits In the event where the operating income for the consolidated fiscal year of a listing application (Note 9) is negative and the operating income for the 9 fiscal years after it is listed are negative, the operating income of the listed company's corporate group (Note 6) does not become positive within 1 year.
*Only for companies listed on JASDAQ Growth
Others Suspension of bank transactions, bankruptcy/rehabilitation/reorganization proceedings or liquidation, suspension of business activities, inappropriate merger, etc., impairment of soundness of transactions with a controlling shareholder (in case of change in the controlling shareholder due to a third-party allotment), delay in submission of securities reports/quarterly reports, false statement in securities reports, etc., violation, etc. of the listing agreement, failure to delegate shareholder services to an agent, restriction on transfer of shares, becoming a wholly-owned subsidiary, failure to be subject to handling by the designated book-entry transfer organization, unreasonable restrictions on shareholders' rights, acquisition of all shares, involvement of anti-social forces, and others (public interest and investor protection)

Note:

  1. "Number of shareholders" refers to the number of persons who own at least one unit of shares. (For more information, please refer to "Criteria for the number of shareholders (share distribution).")
    Criteria for the number of shareholders (share distribution)
  2. "Tradable shares" refers to listed stocks, etc. excluding shares owned by persons holding at least 10% of the number of listed shares as well as other shares specified by the Enforcement Rules as having little liquidity. (For more information, please refer to "Criteria for the number of tradable shares (share distribution).")
    Criteria for the number of tradable shares, etc. (share distribution)
  3. "One unit" refers to the number of shares in a Share Unit (Tangen) in cases where the Share Unit system is adopted, or one share if such system is not adopted.
  4. The "market capitalization of tradable shares" refers to the amount obtained by multiplying the final price (including special quote price or sequential trade quote price) in the auction market on the last day of the listed company's fiscal year by the number of tradable shares as of that day.
  5. The "4 most recent consolidated fiscal years" refers to the 4 consolidated fiscal years prior to the last day of the immediately preceding consolidated fiscal year. (For a company which does not prepare consolidated financial statements, it shall be the 4 business years prior to the last day of the immediately preceding business year.)
  6. "Operating income" refers to operating income described in a consolidated income statement.
  7. "Cash flow in operating activities" refers to cash flow in operating activities described in a consolidated cash flow statement.
  8. "Stock price" refers to either the end of month closing price* or the monthly average closing price**.
    *The final price of the stock, etc. (including special quote price or sequential trade quote price) in the auction market on the last day of the month.
    **The average of daily final prices of the stock, etc. (including special quote price or sequential trade quote price) in the auction market (where deemed appropriate by TSE, daily final prices adjusted for effects due to corporate actions such as stock splits and reverse stock splits.)
  9. The "consolidated fiscal year of the listing application" refers to the consolidated fiscal year in which the day the application for listing on JASDAQ was made by the listed company. (For a company which does not prepare consolidated financial statements, it shall be the business year.)

Top of Page