TSE Outlines April 2022 Market Realignment

Economy

Tokyo, Feb. 21 (Jiji Press)--The Tokyo Stock Exchange announced on Friday an outline of its planned market realignment for April 2022 featuring stricter listing standards.

Under the plan, the current four sections of the TSE--the first section, the second section, Mothers and Jasdaq--will be consolidated into three. Through the reform, the TSE aims to increase investment from both inside and outside of Japan by urging listed firm to achieve sustainable growth.

Companies will need to have at least 10 billion yen in tradable shares in order to be listed on the top-tier "prime" section.

More than 400 firms now listed on the first section, the current top section of the TSE, do not meet this standard. To avoid confusion, however, the TSE will allow them to be listed on the prime section during a transition period.

Some have voiced concern that the reform will be imperfect if first-section companies with poor corporate governance are allowed to trade on the prime section.

[Copyright The Jiji Press, Ltd.]

Jiji Press