TSE And OSE Lists 20 Firms With Market Capitalization Below Minimum Set Levels In January

The market capitalization of twenty firms listed on the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange (OSE) fell below certain minimum levels set by the exchanges in January, according to information posted on the exchanges' websites on 2

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The market capitalization of twenty firms listed on the Tokyo Stock Exchange (TSE) and the Osaka Securities Exchange (OSE) fell below certain minimum levels set by the exchanges in January, according to information posted on the exchanges’ websites on 2 February.

Fourteen of the companies in question are listed on the TSE. In contrast, according to the TSE’s website, just two TSE-listed companies fell below the minimum level in January 2008. The minimum levels are set to decide whether a company is to be demoted to a lower section of the market or delisted.

The news comes despite a coordinated move by all six of Japan’s securities exchanges on 13 January 2009 to help listed firms by easing their market cap requirements until the end of December 2009.

Under the rules of Japan’s securities exchanges, if the market capitalization of a company falls below a certain level in a month, the company enters a nine-month probationary period (which is shortened to three months if the company fails to submit a recovery plan). If the company fails to reach or exceed the required level of market capitalization during this period, it is demoted to the second section of the market or delisted. The minimum level varies according to exchange or market section.

D.C.

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