JAPAN Law and Practice Contributed by: Kunihiko Morishita, Masayuki Hashimoto and Koichi Miyamoto, Anderson Mori & Tomotsune
after, includes such measures in a prospectus and other materials; and • discloses the risks associated with the invest - ment in unlisted stocks in the prospectus and other materials. In addition, investable unlisted stocks must satis - fy certain requirements, such as being issued by a company of which the financial statements are audited by a certified public accountant or audit firm and an unqualified audit report is issued on
them. Notwithstanding this requirement, in the case where unlisted stocks are indirectly held through investment trusts or other entities and if such investment trusts or other entities are sub - ject to audit, the audit requirement applicable to the underlying unlisted stocks can be omitted. Furthermore, in investing in unlisted stocks, an investment trust is required to examine the status of ensuring sound management of the company issuing such unlisted stocks and other matters.
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