Japan: Revision to TSE Rules on Mothers

Nagashima Ohno & Tsunematsu, Tokyo | November 01, 2009

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On November 11 1999, the Tokyo Stock Exchange (TSE) established a new market named Mothers for high-growth and emerging stocks. Over the course of its 10-year existence, a total of 250 emerging companies listed on Mothers. Because of market and economic changes since its establishment, the TSE has recently announced plans to refocus the objective of Mothers.

When Mothers was first established the TSE's listing requirements were minimal, in order to give more emerging companies an opportunity to list their shares. However, over the past 10 years the requirements for companies choosing to list on Mothers have steadily become more stringent. In addition, because of amendments to the Financial Instruments and Exchange Act, formerly known as the Securities and Exchange Law, companies listed on Mothers are now required to...




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