The Tokyo Stock Exchange plans to raise the standard it sets for startup companies to remain listed. The aim is to urge these smaller ventures to grow fast and attract institutional investors. TSE officials presented their plan to ruling party lawmakers on Wednesday.



The revised regulation would require startups to achieve a market value of at least 10 billion yen, or about 67 million dollars, to remain listed. These venture firms would have to hit this target within five years of going public.



The current standard sets a market value of 4 billion yen, and a timeframe of 10 years.



The market operator plans to apply the new rule from 2030 or later.



The TSE operates a three-tier system: the Prime Market for blue-chip companies, the Standard Market for firms expected to expand steadily, and the Growth Market for startups.



Some 600 businesses are listed on the Growth market, and most of them are small. This makes it difficult to attract institutional investors, and the huge funds they like to inject into this sector.