SESC Latest Topics No.71＜January 2021＞

Recommendation for administrative monetary penalty payment orders against an employee of ASAHI BROADCASTING CORPORATION for communicating insider information, and against an offender who committed insider trading related to shares of ASAHI BROADCASTING CORPORATION, using information provided from the employee.
Recommendation for administrative monetary penalty payment orders against a worker of a corporation in negotiation to conclude a contract with DLE Inc. for committing insider trading and for communicating insider information, and against an offender who committed insider trading related to shares of DLE Inc., using information provided from the worker.

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order to offender (1), who is an employee of ASAHI BROADCASTING CORPORATION and a worker of a corporation in negotiation to conclude a contract with DLE Inc., and to offender (2), who received insider information from the offender (1).

Based on an inspection, the SESC determined that offender (1) had committed insider trading by purchasing shares of DLE Inc. and had communicated insider information about ASAHI BROADCASTING CORPORATION and DLE Inc. to offender (2), and that offender (2) had committed insider trading by purchasing shares of both companies, using insider information, in violation of the Financial Instruments and Exchange Act.

4,510,000 yen penalty against offender (1)
3,050,000 yen penalty against offender (2)

Recommendation for administrative monetary penalty payment order against an offender who committed market manipulation related to shares of KIMURATAN CORPORATION.

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 4,250,000 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 the purpose of inducing the sale and purchase of securities through bolstering share prices of KIMURATAN CORPORATION by placing successive purchase market orders or purchase orders at the limit of prices and by opposing his/her own purchase and sale orders at higher prices than the contracted prices.

Through these techniques, the offender intended to mislead other persons into believing that the sale and purchase of the securities were thriving, and to cause fluctuations in market prices in his/her favor.