①The provisions of Article 27-22-2, paragraph (1) of the New Securities and Exchange Act (limited to item (i)) apply to the purchase set forth in that item that is conducted based on a resolution of an annual general meeting, etc. made on or after the effective date, and for the purchase prescribed in Article 27-22-2, paragraph (1) of the Former Securities and Exchange Act that is conducted based on a resolution of an annual general meeting, etc. made before the effective date, the provisions then in force continue to govern.

②The provisions of Article 27-22-2, paragraph (1) of the New Securities and Exchange Act (limited to items (ii) and (iii)) apply to the purchase, etc. set forth in item (ii) or (iii) of that paragraph that is conducted on or after April 1, 1999.

①With regard to a person who, at the time this Act comes into effect, actually falls under the category of a large-volume holder prescribed in Article 27-23, paragraph (1) of the New Securities and Exchange Act (hereinafter referred to as a "new large-volume holder" in this Article) (excluding a person who falls under the category of a large-volume holder prescribed in Article 27-23, paragraph (1) of the Former Securities and Exchange Act), the person is deemed to have become a new large-volume holder on the effective date, and the provisions of Articles 27-23 through 27-30 of the New Securities and Exchange Act (including the penal provisions pertaining to those provisions) apply; provided, however, that this does not apply if the holding ratio of share certificates, etc. prescribed in Article 27-23, paragraph (4) of the New Securities and Exchange Act has become 5 percent or less on the effective date.

②In the case referred to in the preceding paragraph, special provisions on the content of statements in the statement of large-volume holdings prescribed in Article 27-23, paragraph (1) of the New Securities and Exchange Act that a new large-volume holder is to submit are specified by Cabinet Office Order.

③The following reports that, at the time this Act comes into effect, are actually submitted pursuant to the provisions of Chapter II-3 of the Former Securities and Exchange Act are deemed to have been submitted pursuant to the provisions of Chapter II-3 of the New Securities and Exchange Act:

①A person who, at the time this Act comes into effect, is actually engaged in the securities business prescribed in Article 2, paragraph (8) of the New Securities and Exchange Act with regard to new securities may continue to engage in that securities business, notwithstanding the provisions of Article 28 of the New Securities and Exchange Act, for three months from the effective date (or, if a disposition of refusal of registration is made within that period pursuant to the provisions of Article 28-4 of the New Securities and Exchange Act or Article 6, paragraph (1) of the Act on Foreign Securities Firms as amended by the provisions of Article 3 (hereinafter referred to as the "New Foreign Securities Firms Act"), until the date of that disposition). The same applies, where that person has filed within that period an application for the registration referred to in Article 28 of the New Securities and Exchange Act or Article 3, paragraph (1) of the New Foreign Securities Firms Act, during the period until the day on which notice is received that registration will be made upon that application or the day on which notice is received, after the lapse of that period, that registration will not be made upon that application.

②Among the persons prescribed in the preceding paragraph, a person who, at the time this Act comes into effect, is actually engaged with regard to new securities in the business set forth in the items of Article 29, paragraph (1) of the New Securities and Exchange Act may continue to engage in that business, notwithstanding the provisions of Article 29, paragraph (1) of the New Securities and Exchange Act, for three months from the effective date (or, if a disposition of refusal concerning the authorization referred to in that paragraph or Article 7, paragraph (1) of the New Foreign Securities Firms Act is made within that period, until the date of that disposition). The same applies, where that person has applied within that period for the authorization referred to in Article 29 of the New Securities and Exchange Act or Article 7, paragraph (1) of the New Foreign Securities Firms Act, during the period until the day on which notice is received that authorization will be granted upon that application or the day on which notice is received, after the lapse of that period, that authorization will not be granted upon that application.

①A person who, at the time this Act comes into effect, actually holds a license under Article 28 of the Former Securities and Exchange Act is deemed to have received the registration under Article 28 of the New Securities and Exchange Act on the effective date. In this case, the provisions of Article 62, paragraph (3) and Article 194-4, paragraph (1) of the New Securities and Exchange Act do not apply.

②A person who is deemed, pursuant to the provisions of the preceding paragraph, to have received the registration under Article 28 of the New Securities and Exchange Act (hereinafter referred to as a "deemed registered securities company") must, within two months from the effective date, submit to the Financial Reconstruction Commission a document stating the particulars set forth in the items of Article 28-2, paragraph (1) of the New Securities and Exchange Act and the documents set forth in Article 28-2, paragraph (2), items (ii) through (iv) of that Act.

③When the documents prescribed in the preceding paragraph are submitted, the Financial Reconstruction Commission is to register in the securities company register the particulars set forth in the items of Article 28-2, paragraph (1) of the New Securities and Exchange Act and the particulars set forth in Article 28-3, paragraph (1), item (ii) of the New Securities and Exchange Act that are stated in those documents.

A person whose licenses of all types have been revoked, or who has been ordered to be dismissed, pursuant to the provisions of Article 35, paragraph (1) or (2) of the Former Securities and Exchange Act is deemed to have had the registration revoked, or to have been ordered to be dismissed, pursuant to the provisions of Article 56, paragraph (1) or (2) of the New Securities and Exchange Act on the day on which the person received that disposition.

①A person who, at the time this Act comes into effect, actually holds a license under Article 28, paragraph (2), item (iii) of the Former Securities and Exchange Act is deemed to have received the authorization for the business set forth in Article 29, paragraph (1), item (ii) of the New Securities and Exchange Act on the effective date. In this case, the provisions of Article 62, paragraph (3) and Article 194-4, paragraph (1) of the New Securities and Exchange Act do not apply.

②A person who is deemed, pursuant to the provisions of the preceding paragraph, to have received the authorization for the business set forth in Article 29, paragraph (1), item (ii) of the New Securities and Exchange Act must, within two months from the effective date, submit to the Financial Reconstruction Commission a document stating the particulars set forth in the items of Article 29-3, paragraph (1) of the New Securities and Exchange Act and the documents prescribed in paragraph (2) of that Article.

③When the documents prescribed in that paragraph are submitted by the person prescribed in the preceding paragraph, the Financial Reconstruction Commission is to annotate, in that person's registration as a securities company, that the person has received the authorization for the business set forth in Article 29, paragraph (1), item (ii) of the New Securities and Exchange Act.

①The provisions of Article 30, paragraphs (1) through (3) of the New Securities and Exchange Act do not apply to a deemed registered securities company until the day on which that deemed registered securities company submits the documents prescribed in Article 12, paragraph (2) of the Supplementary Provisions pursuant to the provisions of that paragraph.

②The provisions of Article 30, paragraph (4) of the New Securities and Exchange Act do not apply to a person who is deemed, pursuant to the provisions of paragraph (1) of the preceding Article, to have received the authorization for the business set forth in Article 29, paragraph (1), item (ii) of the New Securities and Exchange Act, until the day on which that person submits the documents prescribed in paragraph (2) of the preceding Article pursuant to the provisions of that paragraph.

A person who, at the time this Act comes into effect, is actually a director of a deemed registered securities company and has assumed the position of director or company auditor of another company (excluding a person who has obtained the approval referred to in Article 42 of the Former Securities and Exchange Act, or in the proviso to Article 42-2, paragraph (1) or the proviso to paragraph (2) of that Article) must, notwithstanding the provisions of Article 32, paragraph (4) of the New Securities and Exchange Act, notify the Financial Reconstruction Commission to that effect within two months from the effective date.

①A deemed registered securities company that, at the time this Act comes into effect, is actually engaged in a business set forth in the items of Article 34, paragraph (2) of the New Securities and Exchange Act with the approval referred to in the proviso to Article 43 of the Former Securities and Exchange Act is deemed to have made, on the effective date, the notification referred to in Article 34, paragraph (3) of the New Securities and Exchange Act for that business.

②A deemed registered securities company that, at the time this Act comes into effect, is actually engaged, with the approval referred to in the proviso to Article 43 of the Former Securities and Exchange Act, in a business that falls under neither the business prescribed in Article 34, paragraph (1) of the New Securities and Exchange Act nor the businesses set forth in the items of paragraph (2) of that Article is deemed to have received, on the effective date, the approval referred to in paragraph (4) of that Article for that business. In this case, the provisions of Article 62, paragraph (3) of the New Securities and Exchange Act do not apply.

A confirmation referred to in the proviso to Article 50-3, paragraph (3) of the Former Securities and Exchange Act that was given before the effective date is deemed to be a confirmation referred to in the proviso to Article 42-2, paragraph (3) of the New Securities and Exchange Act.

An approval referred to in the proviso to Article 50-2 of the Former Securities and Exchange Act that was given before the effective date is deemed to be an approval referred to in the proviso to Article 45 of the New Securities and Exchange Act.

The provisions of Article 47 of the New Securities and Exchange Act do not apply to a deemed registered securities company until March 31, 1999.

The provisions of Article 49, paragraphs (1) and (3) of the New Securities and Exchange Act apply to the business report referred to in paragraph (1) of that Article for a business year ending on or after the effective date, and for the business report referred to in Article 53, paragraph (1) of the Former Securities and Exchange Act for a business year ending before the effective date, the provisions then in force continue to govern.

The provisions of Article 50 of the New Securities and Exchange Act apply to the explanatory documents prescribed in that Article for a business year ending on or after the effective date.

①The provisions of Article 51 of the New Securities and Exchange Act apply, with regard to a deemed registered securities company, to the accumulation of the securities transaction liability reserve under paragraph (1) of that Article for a business year commencing on or after the effective date, and the provisions then in force continue to govern the accumulation of the securities transaction liability reserve under Article 59, paragraph (1) of the Former Securities and Exchange Act for a business year that commenced before the effective date.

②The securities transaction liability reserve under Article 59, paragraph (1) of the Former Securities and Exchange Act that exists at the time this Act comes into effect with regard to a deemed registered securities company, and the securities transaction liability reserve under paragraph (1) of that Article in the case where the provisions then in force continue to govern pursuant to the provisions of the preceding paragraph, are deemed to have been accumulated as the securities transaction liability reserve under Article 51, paragraph (1) of the New Securities and Exchange Act.

③The approval under the proviso to Article 59, paragraph (2) of the Former Securities and Exchange Act that was given before the effective date is deemed to be the approval under the proviso to Article 51, paragraph (2) of the New Securities and Exchange Act.