Following the Tokyo Stock Exchanges announcement on March 13 to delist the Livedoor Co. Ltd and Livedoor Marketing as of April 14, the market is now watching closely as to how long JASDEC will continue its depository service for the shares of Livedoor Co. Ltd and Livedoor Marketing, a Mizuho Corporate Bank spokesman said Monday.
Due to the regulation, JASDEC provides its depository service only with the listed issues, JASDEC should return the physical stock certificates to the shareholder if a company delists the shares. Nevertheless, the process takes time and effort since JASDEC keeps them as in the form of so-called jumbo certificates, it cannot be returned to the shareholders as they are, Mizuho said.
In light of such circumstance, JASDEC occasionally took action in the past to continue the service for a delisted company while the preparation of stock certificates was still under way. In Kanebos case, JASDEC actually extended the service for 4 months after their shares were delisted.
JASDEC truly recognize the impact of the Livedoor issue to the market, officials said, and have to consider how long to provide the depository service for the companies.
They will discuss on this issue with market participants such as brokerage houses and custodian banks after the completion of the shareholders list at the fiscal year end of March 31.