: Small; Medium; Large

Listing

Criteria for Listing

Update : Apr. 18, 2008

Formal Requirements (Domestic Stocks)

As of end of March 2008

Criteria	A company must meet criteria (1)-(5), (8), and also criteria (6) or (7)
(1)Number of Shareholders	800 or more (or 2,200 or more *2)
(2)Tradable Shares1*	Number of tradable shares: 4,000 units or more Market capitalization of tradable shares: ¥1 billion or more Ratio of tradable shares to listed shares: 30% or more (a) 20,000 or more share units in circulation (b) 35% or more of the shares in circulation, listed stock, etc.
(3)Market Capitalization of Shares Listed	¥2 billion or more (or ¥50 billion or more *2)
(4)Number of Years of Business Operation	No less than 3 years under the board of directors
(5)Shareholders' Equity	¥1 billion or more as of the end of the fiscal year immediately preceding the current fiscal year
(6)Pre-tax Profit	Either (a or b) Annual total for each of the last two years: 1st year:¥100 million or more, and 2nd (last) year: ¥400 million or more Annual total for each of the last three years: 1st year: ¥100 million or more, 3rd (last) year: ¥400 million yen or more, and total for the three years: ¥600 million or more
(7)Total Market Capitalization	¥100 billion or more, except for when sales for the immediately preceding year is less than ¥10 billion.
(8)False Statements or Unfair Representations	There should be no false statements in the applicant's securities reports for the 2 most recent fiscal years (or for the 3 most recent fiscal years, in cases where neither criteria (6)a nor (7) are met). The opinion given by a certified public accountant in the audit reports should be 'fair' for the 2 most recent fiscal years (or for the 3 most recent fiscal years, in cases where neither (6)a nor (7) are met) Except for the 1 most recent fiscal year. A qualified opinion for exclusion was not expressed by the auditor for the most recent fiscal year.

(*1)"Tradable Shares" refers to listed shares excluding shares held by parties with a special interest such as officers, shares owned by the company itself, and shares held by persons who individually own 10% or more of listed shares.
(*2)If listed directly on the 1st section.
(*3)1 unit is the minimum number of shares necessary for 1 voting right.

Eligibility Requirements

As of March 8, 2006

Rule 2 of the Criteria for Listing Examination of Stock	Rule 1 of the Supplementary Rules to Criteria for Listing Examination of Stock (Summary)
(1) Business continuity and profitability: The applicant must conduct its business continuously with a positive outlook for future business performance.	The applicant has positive expectations with regard to profit and loss and income and expenditure. The applicant expects to earn a sufficient amount of profit to be able to pay an adequate amount of surplus dividends. The applicant is capable of stably and continuously conducting purchases, production, sales and other operational activities in light of past business conducted with clients, demand trends for the company's products and the like. No apparent circumstances exist which would cause a disruption to the continuity of the main business activities of the corporate group. The managerial structure is appropriately maintained and operated so that the security of the company's assets and the efficiency of management activities are ensured. There are no obstacles to continuous management activities, such as the inability to secure the personnel necessary for stable business conduct through employee reshufflings or employing outside personnel, etc.
(2) Soundness of corporate management: The applicant must conduct its business in a fair and honest manner.	The applicant has not given undue benefit to specific persons through business conduct or any other management activity. The mutual kinship among executives, the composition of executives, or dual assumption of offices in other companies, etc. does not prevent business from being executed in a fair, honest and efficient manner, or from effective auditing.
(3) Appropriateness and accuracy of disclosure of corporate affairs, etc. The applicant must be able to disclose corporate affairs, etc. in an appropriate and accurate manner.	Documents pertaining to disclosure of corporate affairs are drawn up according to laws and regulations, etc., and the descriptions of items which may have a material impact on investors' investment decisions are easy to understand. The applicant has developed and administered its accounting system appropriately in light of the accounting standards adopted. The applicant does not distort disclosure of the current status of the business group through actions such as business transactions with a specified party, or adjustment of stock ownership ratio of subsidiaries and affiliated companies. The company is capable of managing corporate information including facts that have a material impact on management, and disclosing this information in a timely and appropriate manner.
(4) Independence from parent company, etc. The applicant must be able to ensure independence from its parent company, etc.	Neither the parent company, etc. nor the applicant company forces or induces transactions which are disadvantageous to the applicant or parent company, etc. Neither the applicant nor the parent company conducts business or other transactions under significantly different conditions than normal transactions. The applicant cannot be considered a de facto business unit of the parent company, etc. The stock issued by the parent company, etc. has been listed on a domestic stock exchange. In the event that the parent company, etc. does not fall under d. above, facts and other corporate information concerning that company that has a material impact on its management can be accessed adequately. In addition, the applicant ensures in writing that the parent company, etc. agrees to (a), or both (b) and (c) as shown below. (a) In the event that the parent company, etc. makes continuous disclosure of corporate information pursuant to laws and regulations, the applicant submits to the TSE copies of the parent company's annual securities reports and attached documents, semiannual reports, quarterly reports, and current reports, and the TSE makes them available for public inspection. (b) In the event that the parent company, etc. does not make continuous disclosure of corporate information, the applicant submits to the TSE documents drawn up according to Form 3 stipulated in Item 1, Paragraph 1, Article 15 of the Cabinet Office Ordinance Regarding Disclosure every business year even after its listing, and the TSE makes them available for public inspection. (c) The applicant discloses in a timely and appropriate manner corporate information related to the parent company, etc. which has a material impact on the management of the former.
(5) Matters that the TSE deems necessary in light of public interest and the protection of investors	Shareholders' rights and the exercise of such are not unduly restricted. In the event that the applicant has introduced takeover defense measures, it respects the following items. (a) Sufficient disclosure (b) Transparency (c) Effect on the secondary market (d) Respect for shareholders' rights The applicant is deemed appropriate in consideration of the public interest and the protection of investors.