Tokyo Stock Exchange Inc. is considering revising the eligibility criteria, including the level of market capitalization, for listings on its first section, a move that could cut the number of companies listed on the section by 30%, The Nikkei reported.
Currently, more than 2,100 companies are listed on TSE's first section.
The proposal involves requiring companies listed on the first section to maintain a market capitalization of ¥25 billion, compared to ¥2 billion currently. The stock exchange would also require companies listed on the first section to make quarterly disclosure in English. The stock exchange's representatives are set to present the proposal to an advisory panel to the minister of state for financial services later in March.
Under the proposal, medium-size and emerging companies, which are currently placed in the second section and Jasdaq and Mothers markets, will be consolidated into either "emerging" or "standard" sections, the publication reported.
As of March 14, US$1 was equivalent to ¥111.77.