Comments /634 Views / Friday, 30 March 2012 00:01
TOKYO (Reuters): The head of the Tokyo Stock Exchange said an insider trading case unveiled by authorities last week was a blow to the reputation of Japan’s capital markets and called for new disclosure rules and other measures to combat the problem.
“For this to happen as Japan touts its reputation globally as a trustworthy market, a market in Asia with a 130-year history and a strong set of rules, it’s a real shame,” said Exchange CEO Atsushi Saito.
Last week Japan’s securities market regulator recommended Chuo Mitsui Asset Trust and Banking be fined, saying the fund manager traded on a tip from a broker about a planned share offering by energy firm Inpex in 2010.
The fine, while small at 50,000 yen ($600), marked the first action taken by authorities in a high-profile probe triggered by accusations of insider trading around a series of stock offerings including the Inpex case.
The Securities Exchange and Surveillance Commission has not named the brokerage involved. However, sources with knowledge of the matter have told Reuters that an employee of Nomura Holdings, a lead underwriter on the Inpex offering, was the source of the leaked information. Nomura has not commented on whether its employee was the source of the tip-off, only that it was cooperating with the investigation by the SESC.
Saito, himself a former Nomura executive, put his weight behind a new rule being pushed by a securities industry association to make it mandatory for underwriters to disclose to whom they are allocating stock in the company issuing shares.
“The lack of disclosure is at the root of all securities-related incidents. If a wide range of people are given access to information and there is transparency, then we would rarely see such cases occurring,” Saito said.
The exchange also announced on Tuesday that it would dissolve its joint venture in Japan with the London Stock Exchange and run the struggling market for professional investors on its own.
The two bourses launched the Tokyo AIM market in June 2009 with the aim of attracting start-up companies with less stringent listing and disclosure requirements than on the main Tokyo bourse.
The venture, owned 51 per cent by the TSE and 49 per cent by the LSE, has only managed to list one company due in large part to the lack of enthusiasm from securities firms towards taking on the risk of vetting applicants and monitoring them after listing.
24 June 2016
It is evident that conventional leadership development practices are no longer adequate. Organisations globally need to incorporate the next generation leadership competencies in order to address the development needs of th...
24 June 2016
“Arumugam Thondaman objected to the former President offering me a ministerial portfolio. Now that we are in power, I will not allow him becoming a cabinet minister in our Government,” declared Minister of Upcountry New Housing Infrast...
24 June 2016
Theory of a coups d’état In the wee hours of 9 January 2015, an interesting incident was reported in mass media. It was the sighting of the former Chief Justice Mohan Peiris at the palace giving possibly legal advice or perhaps advi...
24 June 2016
Prime Minister Ranil Wickremesinghe speaking at a press conference in Davos Today for Sri Lanka to attract investment, we all know we need good institutions favouring economic freedom and the ease of doi...
Coming years will see the death of the death penalty: Mangala
UN Rights Chief urged to identify areas with lack of progress in Sri Lanka’s implementation of Geneva resolution
Role of youth to combat the climate giant
Tamil diaspora group urges intl. community to exert pressure on Sri Lanka to ensure full implementation of UN resolution
Britain’s newspapers take sides in EU referendum debate
Britain and Brexit: What the rest of the world says
Tracing the global market thread that could be unravelled by Brexit
Soros says pound fall after Brexit would be bigger, more disruptive than ‘Black Wednesday’