Schedule for Reforming the Securities Market


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|                                                                               |    FY1997   |    FY1998   |    FY1999   |    FY2000   |    FY2001   | 

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| I. Investment Vehicles (Attractive investment instruments)                    |             |             |             |             |             | 

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|(1) Diversity of the types of bonds                                            |-------------|-------------|             |             |             |  

|(2) Diversity of derivatives products                                          |-------------|-------------|             |             |             | 

|(3) Developing Investment Trust Products                                       |             |             |             |             |             | 

|  <1> Introduction of the Cash Management Account                              |-------------|             |             |             |             | 

|  <2> OTC sales of investment trusts products by banks                         |-------------|-------------|             |             |             | 

|  <3> Private placement of investment trusts                                   |             |-------------|             |             |             | 

|  <4> Investment company type funds                                            |             |-------------|             |             |             | 

|(4) Review of the Definition of Securities                                     |-------------|-------------|-------------|---------->  |             | 

|(5) Enhancement of corporate vitality and efficient use of capital             |-------------|-------------|             |             |             | 

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| II. Markets (An efficient and trusted framework for transactions)             |             |             |             |             |             | 

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|(1) Improvement of transaction system in Stock Exchange                        |-------------|-------------|             |             |             | 

|(2) Improvement of the OTC (JASDAQ) market system                              |-------------|-------------|             |             |             | 

|(3) Deregulation of the solicitation by the securities firms of the unlisted,  |-------------|             |             |             |             | 

|    unregistered stocks                                                        |             |             |             |             |             | 

|(4) Improvement of of the share lending maeket                                 |-------------|-------------|             |             |             | 

|(5) Improvement of the clearing ans settlement system for securities           |-------------|-------------|-------------|---------->  |             | 

|(6) Strengthening inspection, surveillance and enforcement system              |-------------|-------------|-------------|---------->  |             | 

|(7) Strengthening Disclosure                                                   |-------------|-------------|-------------|---------->  |             | 

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| III.Financial Intermediaries (Diverse investment service to meet client needs)|             |             |             |             |             | 

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|(1) Deregulating Brokerage Commissions                                         |             |-------------|-------------|             |             | 

|(2) DIverse activity by intermediaries                                         |-------------|-------------|             |             |             | 

|(3) Employing holding company structure                                        |-------------|-------------|             |             |             | 

|(4) Strengthning asset management services                                     |-------------|-------------|             |             |             | 

|(5) Enhancing the monitoring system of the soundness of securities companies   |-------------|-------------|             |             |             | 

|(6) Entry regulations of the securities companies                              |             |             |             |             |             | 

|  <1> Licensing System reform                                                  |             |-------------|             |             |             | 

|  <2> Enhancing mutual entry into banking, securities and trust business       |-------------|-------------|-------------|             |             | 

|(7) Investor protection related to exits of intermediaries from the market     |             |             |             |             |             | 

|  <1> Strict separation of client assets from securities companies' own assets |-------------|-------------|             |             |             | 

|  <2> Enhancing the securities Deposit Compensation Fund scheme                |             |-------------|             |             |             | 

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| Review of the taxation related to securities                                  |             |-------------|-------------|             |             | 

| Shift to the new administrative regime                                        |             |-------------|             |             |             | 

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