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Outline of Delisting Criteria

Delisting Criteria (Common for All Market Segments)

A listed company which falls under any of the following shall be delisted. (Rule 601, Paragraph 1, Items 1 through 20 of the Securities Listing Regulations)

Items Delisting Criteria (Common for All Market Segments)
Failure to Meet Continued Listing Criteria A listed company shall be delisted after one year (six months in the case of the trading volume of the Continued Listing Criteria) (*1), in principle, has passed since the listed company has fallen short of conforming to the Continued Listing Criteria.
A listed company is required to submit a plan within three months specifying its actions and schedule to conform to the Continued Listing Criteria within one year (six months in the case of the trading volume of the Continued Listing Criteria), in principle, from when it falls short of conforming to the Continued Listing Criteria.
Delay in Submission of Securities Report When an annual securities report or quarterly securities report with an audit report or quarterly review report attached is not filed within one month after the statutory filing period (when a securities report is not filed by the 8th business day of a period during which approval has been granted for an extension to file a securities report or the like.)
False Statement or Adverse Opinion, etc.
  1. When a securities report, etc., contains false statements and TSE deems that it is difficult to maintain an orderly market unless the listed company is delisted
    or
  2. When an audit report or quarterly review report states an "adverse opinion" or "opinion is not expressed," based on which TSE deems that it is difficult to maintain an orderly market unless the listed company is delisted
Securities on Special Alert, etc.
  1. When TSE deems that the listed company's internal management system, etc., is not expected to be adequately developed or implemented even though the listed company meets the criteria for designation of securities on special alert
    or
  2. When TSE deems that the listed company's internal management system, etc., is no longer expected to be adequately developed or implemented during the period in which the listed company is designated as a security on alert
    or
  3. When TSE deems that the listed company's internal management system, etc., has not been adequately developed by the time of the first-year examination or when TSE deems that the listed company's internal management system, etc., has not been adequately implemented by the time of the next examination which will take place on or after the last day of the fiscal year in which the company’s designation was extended under the first-year examination
    or
  4. When TSE deems that the internal management system, etc., of the listed company that is eligible for the follow-up period and whose designation as a Security on Special Alert has been extended is not adequately developed and implemented
Violation of Listing Agreement, etc.
  1. When a listed company commits a serious violation against the listing agreement, commits a serious violation against sworn matters relating to the initial listing application, etc., or is no longer a party of the listing agreement
    or
  2. When TSE deems that a listed company has committed a violation against matters sworn in a written oath for the initial listing application and does not meet the Initial Listing Criteria, and the listed company fails to pass an examination of its listing eligibility equivalent to the initial listing examination within one year.
Other Suspension of bank transactions, bankruptcy/rehabilitation/reorganization proceedings, suspension of business activities, inappropriate merger, etc., impairment of sound transactions with a controlling shareholder (in case of a change in the controlling shareholder due to a third-party allotment), lack of entrustment to a shareholder services agent, restrictions on transfer of shares, conversion to a wholly-owned subsidiary, ceasing to be subject to the book-entry transfer operation of a designated book-entry transfer institution, inappropriate restrictions on shareholders' rights, acquisition of all shares, acquisition by request for sale of shares, etc., share consolidation, involvement of anti-social forces, and others (cases where delisting is deemed appropriate for public benefits or investor protection)

（*1）Of the items in the Continued Listing Criteria, exceptions may apply to "tradable share ratio" and "amount of net assets." For more details, please see sections Tradable Shares and Amount of Net Assets under Details of Continued Listing Criteria.

Tradable Shares
Amount of Net Assets