The Tokyo Stock Exchange has set up a "transitional measure" that allows companies that do not meet the listing criteria to remain on the top prime market for a certain period of time due to the market restructuring in April last year. We have announced a policy to gradually end after March.
After that, if a company does not meet the criteria within one year, it will be designated as a "stock under supervision" as it may be delisted.
The Tokyo Stock Exchange newly established listing standards in conjunction with the market reorganization in April last year, but even companies that do not meet the standards can remain on the prime market for a certain period of time if they submit a plan for improvement. There was a "transitional measure" that could be used.
However, since the deadline for this measure was not clear, there was criticism from investors that it did not lead to an increase in the attractiveness of the market.
For this reason, the Tokyo Stock Exchange has announced a policy to end this transitional measure at the end of each company's fiscal year after March 2025.
If a company fails to meet the criteria within one year after the end of the transitional measures, it may be delisted, and it will be designated as a "stock under supervision" to call attention to investors.
The TSE will officially decide on these policies after going through procedures such as public comments.