The Tokyo Stock Exchange (TSE) plans to tighten listing requirements for startups to drive faster growth and attract institutional investors.

Under the proposed rules, startups must reach a 10 billion yen (US$68.5 million) market valuation within five years of going public, up from the current 4 billion yen (US$27.42 million) in ten years.

The changes are expected to take effect in 2030 or later.

The TSE operates a three-tier system: the Prime Market for major firms, the Standard Market for stable growth companies, and the Growth Market for startups.