The Tokyo Stock Exchange (TSE) has eased its ETF listing criterion. From February 2004, the minimum number of shareholders in exchange-traded funds (ETF) will fall from 500 to 100.
ETFs with less than 100 shareholders at the end of their fiscal year will be placed under a one-year grace period before de – listing. Furthermore, even if the number does not reach 100 during that period, they will be given another grace year if the days with realized trade contract are at least 30 per cent of the total trading days of their first grace period
At present, the TSE sets the minimum number of shareholders at 500, as it insists with equities. Having seen a number of ETFs failing to satisfy this, from July this year the TSE tentatively extended the grace period for another year for ETFs whose original grace period hadExpired
The TSE hopes six ETFs, currently under a grace period, will avoid de – listing if the minimum number of their shareholders at the time of introduction of the new criterion in February 2004 reaches at least 100.