30 Pct of Firms Unqualified for TSE's New Top Section

Economy

Tokyo, July 9 (Jiji Press)--Some 30 pct of companies listed on the Tokyo Stock Exchange's first section do not meet requirements for trading on the TSE's new top-tier "prime" section, the exchange said Friday.

The TSE said that 664 of the 2,191 first-section companies are unqualified. The prime section will be created in April next year as part of the realignment of the exchange's four markets.

Unqualified companies can be listed on the prime section on a temporary basis if they submit plans to meet the requirements. But they may be removed in the future unless they make progress.

In addition, unqualified companies could become qualified if they obtain the TSE's understanding through talks on matters such as the composition of shareholders.

McDonald's Holdings Co. (Japan) <2702>, flea market app operator Mercari Inc. <4385> and some other companies now traded on the TSE's markets for startups are believed to meet requirements for the prime section.

[Copyright The Jiji Press, Ltd.]

Jiji Press