The Tokyo Stock Exchange has decided to penalize its president, Takuo Tsurushima, with a pay cut over a business improvement order issued to the bourse by the Financial Services Agency, TSE officials said Saturday.

The agency ordered the TSE last week to improve its vetting of companies applying for listings and its monitoring of listed companies, saying the TSE's work related to Ardepro Co. was inappropriate.

Ardepro, a Tokyo real estate company, listed its shares on the bourse's Mothers market for startup companies March 18.

The company's professional license was invalidated April 8 by the Tokyo Metropolitan Government over a suspended prison term handed to the president of the company as a result of a traffic accident.

When Ardepro announced April 26 that its license had been revoked, the TSE failed to provide investors with sufficient information on the development, according to the agency.