Update : Jan. 31, 2008
Listing Examination Criteria are generally comprised of two parts: formal criteria and substance criteria. Formal criteria are the minimum requirements that a company must meet when applying for listing. They establish the standards necessary to secure adequate liquidity after listing, as well as the minimal conditions required to ensure the company's ability to continue as a going concern. During listing examinations, the TSE first determines whether or not the company applying for listing fulfills these criteria. After passing the formal criteria examination, the applicant company then proceeds to the substance examination. This examination is generally conducted by a team of two people. During the actual examination, the TSE will determine whether or not the applicant company meets the relevant criteria through hearings and such, focusing primarily on information such as the Listing Application Securities Report included in application documents submitted by the applicant company.
Please note that since the market concept for the Mothers market and the 1st and 2nd sections is different, the formal and substance criteria as well as the examination process is also different.