Tokyo bourse proposes 2025 end of grace period for listing rules (updated)

Japan Exchange

25/01/2023 12:14

(Adds details of the proposal)
       TOKYO, Jan 25 (Reuters) - The Tokyo Stock Exchange said
on Wednesday it had proposed ending a grace period in March 2025
for companies listed on the top "prime" section that fall short
of listing rules.
    The TSE adopted tougher listing criteria for its top
category in April last year, but companies that fall short of
the new rules can currently stay on by submitting improvement
plans, a provision some investors say waters down the reform.
    According to the TSE, which is owned by Japan Exchange Group
Inc  8697.T , 269 firms on the prime section failed to meet the
criteria as of the end of last year.
    The TSE proposed at a panel that those who have not met the
rules by March 2025 would be given a one-year "improvement
period," and then designated as shares under supervision for six
months before delisting.
    The prime section, rebranded from the TSE's first section to
lure more foreign investors, is supposed to have companies with
strong profitability whose governance meets global standards.
    The TSE's "standard" and "growth" sections should also end
their grace period for respective listing rules in March 2025,
the TSE recommended. 
 (Reporting by Hiroko Hamada and Makiko Yamazaki; editing by
Jason Neely and Alexander Smith)
 ((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))