- Despite some watering down of initial plans, the new stock market structure does exert new discipline on listed companies.
- Specifically, the criteria for listing and maintaining a listing are now unified, which was not the case before.
- So companies will have to meet requirements on free float and liquidity on a continuous basis or face demotion.
- This is the latest move in the steady accretive process of Japanese corporate governance. It has secured buy-in from all significant stakeholders.
- The individual steps may seem small, but the change through time is extraordinary.