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Tokyo bourse to ease delisting rules to allay market fears

Companies in negative net worth will be given an extra year to turn around

The TSE has decided to give companies more breathing room when it comes to delisting and applying to IPO.

TOKYO -- The Tokyo Stock Exchange will relax its rules on delisting and initial public offerings for an increasing number of companies whose earnings have been crushed by the economic impact of the novel coronavirus, Nikkei has learned.

Companies that have fallen into negative net worth, when liabilities exceed assets, will now have two years before their shares are delisted, up from one. The exchange will also be more flexible in applying criteria for judging the profitability of companies applying to list their shares.

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