Japan Economic News reported on Friday that the Tokyo Stock Exchange is considering publishing information in English with a market value of more than 25 billion yen ($223.87 million) as a requirement for companies to retain the motherboard market.
According to the report, the SEC plans to provide a transition period of at least three years before the new regulation is officially launched, and is considering the option of gradual adjustment, as these new regulations may trigger large transfers of investors and market turmoil.
While the outside world criticized the company for allowing zombie companies to remain listed, an external group set up by the company proposed that the company should make stricter regulations on the company's staying on the motherboard.
As of November, 2,119 companies were listed on the main board of the Eastern Stock Exchange, while only 292 and 500 were listed on the Euronext and London Stock Exchanges, respectively. The New York Stock Exchange has 2,434, but the U.S. economy is nearly four times larger than Japan's.
About one-third of the companies on the main board of the Eastern Stock Exchange are below the minimum threshold of 25 billion yen for new listed companies, many of which are also below their book value.
But as long as it goes public, it will remain on the motherboard unless its market value is less than 2 billion yen. Nikkei said the SEC was considering raising the minimum market value requirement to 25 billion yen.
Nikkei also reported that only about one-third of the companies in the motherboard market reported their earnings in English.
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