2003 JAPAN LAW: STOCK EXCHANGES-TOKYO STOCK EXCHANGE
Keywords: Stock Exchange, Bankruptcy, Rehabilitate, FTC, Fair Trade Commission, Antimonopoly Law
Copyright 2004. All rights reserved Attorney Roderick H. Seeman
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The Tokyo Stock Exchange will be permitting companies that have filed for bankruptcy to remain listed so long as they meet certain conditions making it likely that they will recover health. While seeking legal rehabilitation their creditors will have to agree to business plans including debt forgiveness, and the firm will have to look likely to be able to retain shareholders equity of 1 billion yen keep a market capitalization of 1 billion yen.
Previously the market immediately delisted any firm filing for bankruptcy.

In May 2003 the Fair Trade Commission issued a warning to the Tokyo Stock Exchange that its regulations to stock brokerage firms about short selling financing fees could violate the Antimonopoly Law. The commission is concerned that the exchange’s regulations are trying to force the brokerages to all charge uniform rates.