Listing Examination/Determining Suitability for Listing

Listing Criteria for the TSE 1st and 2nd Sections

Update : Jan. 31, 2008

3. Listing Criteria for the TSE 1st and 2nd Sections

Formal Requirements (Relevant to Article 205 of Securities Listing Regulations)

The formal requirements that companies must meet when applying for listing include conforming to Article 205 of the Securities Listing Regulations, as well as fulfilling the pre-listing rules regarding IPOs and secondary offerings, etc. as set forth in Article 217 in the same Regulations. An evaluation as to whether or not an applicant company meets these formal requirements will be carried out based on the documents submitted during the time of listing application.

Please see the page below for specific details on formal requirements:

• Criteria for listing

Substance Examination (Relevant to Article 207 of Securities Listing Regulations)

During the substance examination for the 1st and 2nd sections, the TSE will review the applicant company's profitability and ability to continue as a going concern, managerial soundness, effectiveness of corporate governance and internal control framework, properness of disclosure of corporate information, etc. and other information the TSE deems necessary from the standpoint of public value or investor protection. Specifically, the TSE will conduct several hearings with the applicant company based on the pre-submitted documents, as well as conduct on-site inspections at factories or stores. During the last phase of the examination, among other things, the TSE will conduct hearings with the Certified Public Accountant auditing the applicant company, hold interviews with the president and auditor of the applicant company, and conduct a briefing with the president of the TSE.