"Countries important for national security" announced by the Ministry of Finance October 25, 21:48
In response to the proposed amendments to the law that strengthens regulations when foreign investors invest in Japanese companies that are important for national security, there are a number of complaints that “it is unclear which companies are targeted” . The Ministry of Finance has decided to take an exceptional measure by examining the business details of listed companies for each company and announcing specific company names.
Last week, the government submitted a proposal to amend the Foreign Exchange Law to the Diet. The amendment will tighten regulations for foreign investors to invest in Japanese companies that conduct important national security projects such as nuclear power and telecommunications, and notify the government in advance when acquiring more than 1% of shares. Obligate.
On the other hand, for investments that do not have security concerns, as a general rule, deregulation that exempts advance notifications will be conducted at the same time.
However, investors complained about the amendment that it was unclear which companies were eligible for prior notification. For this reason, the Ministry of Finance has decided to examine the contents of more than 3000 companies listed on the stock for each company, and make a list of which companies are eligible for notification.
It is unusual for the Ministry of Finance to judge and classify the business content of individual companies.
The Ministry of Finance says, “There is an explanation that is not enough, and investors have inquired, but I want you to understand that only a part of the regulations will be tightened by this revision.”