①In the case where a company engaged in financial business (meaning a company engaged in financial business prescribed in Article 11, paragraph (1) of the New Act other than a company engaged in insurance business; hereinafter referred to as a "financial company") owns, on the Effective Date, shares of a company in Japan (excluding the shares so owned in the case prescribed in item (iii) of that paragraph; the same applies hereinafter in this Article) in excess of five percent of the total number of its issued shares (hereinafter referred to as the "standard number of shares") (limited, where it owns more than ten percent of the total number of issued shares of that company in Japan, to the case where it owns them having obtained the approval under the proviso to Article 11, paragraph (1) or Article 11, paragraph (2) of the Former Act, or because it falls under either item (i) or item (ii) of Article 11, paragraph (1) of the Former Act), with regard to the acquisition or ownership of the shares of that company in Japan by that financial company, for 10 years from the Effective Date the provisions of Article 11 of the New Act apply with the lesser of the numbers of shares set out in the following items (hereinafter referred to as the "special standard number of shares") deemed to be the standard number of shares, provided, however, that this does not apply if the special standard number of shares is equal to or less than the standard number of shares, or if the standard number of shares increases and becomes equal to or more than the special standard number of shares.

②With regard to the shares prescribed in item (ii) of the preceding paragraph, if any of the grounds set out in the following items arises during the period from January 1, 1977 to the day preceding the Effective Date, the number obtained by adding the number of shares specified in the respective item to the number of shares of that company in Japan owned on December 31, 1976 (or, if the ground set out in item (iv) arises, the number obtained by subtracting the number of shares specified in that item) is deemed to be the number of shares set out in item (ii) of that paragraph.

③With regard to the application of the provisions of paragraph (1) to a company in Japan established by a merger during the period from January 1, 1977 to the day preceding the Effective Date, the sum of the numbers of shares of the company established by that merger that were allotted for the shares, owned on December 31, 1976, of the companies that ceased to exist by that merger is deemed to be the number of shares set out in item (ii) of that paragraph.

④In the case where a merger of companies in Japan is conducted during the period from January 1, 1977 to the day preceding the Effective Date and one of the merged companies survives, if a financial company subject to the application of the provisions of paragraph (1) did not own shares of the company surviving after that merger on December 31, 1976, the number of shares of the company surviving after that merger that were allotted for the shares, owned on that day, of the company that ceased to exist by that merger is deemed to be the number of shares set out in item (ii) of that paragraph.

⑤In the case where the number of shares of a company in Japan that a financial company owns on the Effective Date exceeds the special standard number of shares (or, in the case falling under the proviso to paragraph (1), the standard number of shares) (excluding the case where the number of shares set out in item (iii) of that paragraph becomes the special standard number of shares), for one year from the Effective Date the provisions of Article 11 of the New Act apply with the number of shares owned on the Effective Date deemed to be the standard number of shares. In this case, the provisions of paragraph (7) apply mutatis mutandis.

⑥In the case where, among the shares owned on the Effective Date by a financial company for which the number of shares set out in paragraph (1), item (iii) is made the special standard number of shares pursuant to the provisions of that paragraph, there are shares owned by falling under Article 11, paragraph (1), item (i) or (ii) of the Former Act, the provisions of Article 11, paragraph (2) of the New Act apply with the date of acquisition of those shares deemed to be the day on which it came to own the shares of that company in Japan in excess of the standard number of shares.

⑦When any of the grounds set out in the items of paragraph (2) arises on or after the Effective Date with regard to shares of a company in Japan owned by a financial company that are subject to the application of the provisions of paragraph (1), the number of shares obtained by adding to or subtracting from the special standard number of shares in accordance with the provisions of paragraph (2) is deemed to be the special standard number of shares, provided, however, that shares added by the application of the provisions of paragraph (2), item (ii) (excluding new shares allotted free of charge by the conversion of reserves into capital) are limited to those owned within two years from the date of acquisition.

⑧In the case where a company in Japan that has issued shares of a company in Japan owned by a financial company that are subject to the application of the provisions of paragraph (1) ceases to exist by a merger, if the financial company comes to own shares of a company in Japan set out in the following items in excess of the standard number of shares, the number of shares specified in each of those items is deemed to be the special standard number of shares for the shares of that company in Japan, provided, however, that this does not apply if the provisions of the preceding paragraph apply to the shares of the company surviving after that merger.

The provisions then in force continue to govern the application of penal provisions to acts committed before the Effective Date.