How do mezzanine securities of listed and unlisted companies differ?

Chapter 5 of the Regulations on Securities Issuance and Disclosure, etc., titled 'Special Provisions for Stock-Listed Corporations', applies rules such as the method for calculating the conversion price, the refixing floor, the 1-year (1 month for public offerings) conversion prohibition after issuance and the limit on exercising call options to the convertible bonds and bonds with warrants of listed companies.

Shares received on conversion of a listed company's mezzanine security can be sold on the exchange, but these special provisions do not apply to an unlisted company's mezzanine securities, and the converted shares are hard to sell in the market until the company lists. That is why, for unlisted companies' mezzanine securities, the conversion and redemption terms in the contract and the route for recovering the investment need to be checked even more carefully.