For nearly half a century, Seibu Railway Co. has given the Tokyo Stock Exchange false information about the equity stakes held by its major shareholders. In an unusually swift response, the TSE on Tuesday decided to delist the company, saying its systematic coverup of the stock ownership percentage for those shareholders -- which exceeded a regulatory ceiling -- has seriously undermined investor confidence.
The TSE also sent a reassuring message to the market with the announcement that it would soon begin a wholesale review of the listing management system. A plan now in the works would require all listed companies to commit themselves in writing to proper disclosure of information.
Financial authorities also moved promptly to ensure transparency in stock transactions. Mr. Tatsuya Ito, the state minister in charge of financial services, said his office would work out a new system for assuring the credibility of financial statements that listed companies are required to submit regularly.