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The Tokyo Stock Exchange (TSE) has designated Tokyo Koki Co., Ltd. under Securities Supervision (Examination) as of September 27, 2024. This move is part of the TSE’s regulatory oversight to protect investors and ensure transparency in stock trading practices. The company is being scrutinized for possible delisting due to ongoing examinations related to specific criteria defined by the TSE.
The TSE has placed Tokyo Koki under supervision because it may potentially meet the delisting criteria. The specific clause that has triggered this supervision involves situations where a controlling shareholder could take actions leading to significant changes in the company’s share structure. In such cases, the TSE initiates an examination to determine whether the company should be delisted or if corrective actions are needed to maintain its listing on the exchange.
It has recently seen changes in its stock price, trading at 198 yen as of September 27, 2024, with a 2.59% increase on the day. However, the current scrutiny by the TSE places a cloud of uncertainty over the future of the company’s listing.
The examination period will continue until the TSE reaches a final decision on whether Tokyo Koki Co., Ltd. meets the criteria for delisting. During this period, investors are advised to exercise caution, as the company’s stock remains under heightened scrutiny. If the TSE concludes that delisting is necessary, Tokyo Koki will be removed from the exchange, affecting its accessibility to public investors.
The TSE regularly conducts such examinations to maintain the integrity of its listed companies. It enforces rules that protect minority shareholders from unfair practices, such as reverse stock splits or corporate actions that disproportionately benefit controlling shareholders. If the company can address the concerns raised by the TSE, it may avoid delisting, though this requires swift and decisive action from its management.