(Provisional Translation)
December 5, 2003
Financial Services Agency

The administrative action against
Société Générale Securities (North Pacific) Ltd., Tokyo Branch

1. Acts of conducting a series of securities transactions intended to create artificial market prices which do not reflect actual states of markets

The Securities and Exchange Surveillance Commission (SESC) conducted the inspection of Société Générale Securities (North Pacific) Ltd., Tokyo Branch (''the Branch'' hereafter), and found the following violation of the Securities and Exchange Law (''the Law'' hereafter). The SESC recommended the Commissioner of the Financial Services Agency (FSA) to take a disciplinary action against the Branch on November 28, 2003.

(1)

On November 14, 2001, the Branch placed a series of a large amount of sell orders of a stock at the limited price for the purpose of making a closing price of the stock lower than the ''strike price'' of the Exchangeable Bond (''EB'' hereafter). As a result, the price of the stock went below the strike price at the close.

(2)

The acts above are found to be ''acts of conducting a series of securities transactions intended to create artificial market prices which do not reflect actual states of markets'' stipulated in the Article 4 (iii) of the Ordinance of the Cabinet Office Concerning the Regulations, etc. of Conducts of Securities Companies, and thus to have violated the Article 42 (1) (ix) of the Law as applied by the Article 14 (1) of the Law on Foreign Securities Firms.

2. The administrative action against the Branch

On the basis of the above findings, the FSA issued the following business suspension and improvement orders to the Branch today:

(1)	Suspending business operation Suspending all the stock tradings on its own account from December 8, 2003 to December 19, 2003 (10 business days) except for the execution of transactions contracted on or before December 5, 2003.
(2)	Improving compliance with the law
	a) Strengthening the internal control system, securing strict compliance by all the directors and staff, taking preventive measures against recurrence of the above-mentioned violation, and clarifying locus of responsibility. b) Submitting a report to the FSA on the implementation of the above measures by January 8, 2004.