Reorganization of Tokyo Stock Exchange TSE 1st Section No significant revision December 25 6:34
A panel of experts from the Financial Services Agency, which is discussing restructuring the Tokyo Stock Exchange's four markets into three, has set forth a draft standard for restructuring. The most noticeable was how the current "TSE 1st Section" will change, but we did not make any major changes to avoid confusion.
The Tokyo Stock Exchange plans to reorganize the four public markets, Mothers and JASDAQ, targeting first and second sections of the Tokyo Stock Exchange and start-up companies.
The Financial Services Agency's expert meeting, which has been discussing the reorganization plan, will finalize the final report on 25th, but the new marketplace to replace the current "TSE 1st Section" has been tentatively named "Prime Market" after the reorganization .
The biggest concern of investors was how long the listed companies will remain in the prime market.
Until now, the market capitalization of all shares issued by a company multiplied by the stock price was, in principle, 25 billion yen or more as the standard for listing on one copy.
Under the new standard, we estimate that the number of stocks actually available on the market multiplied by the stock price will be more than 10 billion yen.
However, according to the Financial Services Agency, it is not a matter of going through a major overhaul to ensure that many of the currently listed companies do not fall outside the scope and cause confusion even if the new standards are replaced.
Based on the report dated Thursday, the TSE will consider more detailed criteria for market restructuring.