SESC Latest Topics No.11«April 2015» Last Updated : April 24, 2015

What’s New on the SESC Website

(Month of April 2015)

This page contains the latest in events, developments, and updates to the SESC website.

Topics

Press Releases

(Following press release is available in Japanese)

Financial Instruments Businesses etc.

April 24, 2015:

Notification of Inspection Results to Setouchi Fund Co., Ltd.open new window

«Summary»

The Director-General of the Shikoku Local Financial Bureau announced the results of an inspection of Setouchi Fund Co., Ltd. (“the Company”), a Specially Permitted Business Notifying Person.

Based on the inspection of the Company, the Director-General of the Shikoku Local Financial Bureau recognized that the Company acknowledged that the Company has been unable to confirm the current status of investments and assets that the Company solicited and managed by itself.

Market Misconduct

April 17, 2015:

Recommendation to impose an administrative penalty order against an offender who committed market manipulation related to shares of TRUST CO., LTD.open new window

«Summary»

The SESC recommended the Prime Minister and the commissioner of the FSA to impose an administrative penalty order of 1,700,000 yen against an offender who committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offender had committed market manipulation for twenty-six days by opposing purchase and sale orders of the shares of TRUST CO., LTD at a higher price than the contracted price.

Through these techniques, the offender intended to mislead the market into believing that sales and purchases of the shares of TRUST CO., LTD were thriving, and to cause fluctuations in market prices in his/her favor.

March 27, 2015:

Recommendation to impose an administrative penalty order against an offender who received insider information from an officer of negotiator with Mitsubishi Chemical Holdings Corporation, for committing insider trading related to shares of Mitsubishi Chemical Holdings Corporation.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty order of 240,000 yen against an offender who had received insider information from a negotiator with Mitsubishi Chemical Holdings Corporation in violation of the Financial Instruments and Exchange Act.

The SESC determined, based on an inspection, that the offender had committed insider trading by purchasing shares of Mitsubishi Chemical Holdings Corporation using the insider information.

March 27, 2015:

Recommendation to impose an administrative penalty order against nine offenders (seven persons and two corporations) who received insider information from officers and employees of TAIYO NIPPON SANSO CORPORATION, for committing insider trading related to shares of TAIYO NIPPON SANSO CORPORATION.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty order of 19,480,000 yen in total against nine offenders who had received insider information from officers and employees of TAIYO NIPPON SANSO CORPORATION in violation of the Financial Instruments and Exchange Act.

The SESC determined, based on an inspection, that the offenders had committed insider trading by purchasing shares of TAIYO NIPPON SANSO CORPORATION using the insider information.

March 24, 2015:

Filing criminal charges against two suspects for committing insider trading related to a tender offer for the shares of TOMEN ELECTRONICS CORPORATIONopen new window

«Summary»

The SESC filed charges against two suspects with the Tokyo District Public Prosecutors Office for violation of the Financial Instruments and Exchange Act.

Around November 12, 2013, Suspect A received material information from a director of a company which was negotiating a contract with TOYOTA TSUSHO CORPORATION (“TOYOTA TSUSHO”) about transferring TOMEN ELECTRONICS CORPORATION (“TOMEN ELECTRONICS”) shares, that are listed on the market opened by the Tokyo Stock Exchange, Inc., about the fact that the organ responsible for making decisions on the execution of the operations of TOYOTA TSUSHO had decided to make a tender offer for the shares of TOMEN ELECTRONICS.

On November 19, prior to the announcement of the material information, despite the absence of any legal exception, Suspect A conspired with Suspect B, who was an acquaintance of Suspect A, to buy a total of 30,000 TOMEN ELECTRONICS shares for a total of 35,340,000 yen under the name of Suspect B.

March 24, 2015:

Recommendation to impose an administrative penalty order against four offenders who received insider information from an officer of a negotiator with a tender offeror for committing insider trading related to shares of TOMEN ELECTRONICS CORPORATION.open new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty order of 1,990,000 yen in total against four offenders who had received insider information from an officer of a negotiator with a tender offeror in violation of the Financial Instruments and Exchange Act.

The SESC determined, based on an inspection, that the offenders had committed insider trading by purchasing shares of TOMEN ELECTRONICS CORPORATION using the insider information.

False Disclosure Statement

March 27, 2015:

Recommendation to impose an administrative penalty order against SJI Inc. for making false statements in disclosure documentsopen new window

«Summary»

The SESC recommended the Prime Minister and the Commissioner of the FSA to impose an administrative penalty order of 194,260,000 yen against SJI Inc. ("the company"). Based on an inspection of the company's disclosure statements, the SESC has determined that the company made false statements in its Ongoing Disclosure Documents and Offering Disclosure Documents, which presented no allowance for doubtful accounts for cash misappropriated to a director of the Company, who was facing de facto bankruptcy, by a series of fictitious sales transactions, etc.

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