SESC Latest Topics No.72＜February 2021＞

Recommendation for an administrative monetary penalty payment order against an offender who committed insider trading related to shares of Oncolys BioPharma Inc.

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 28,200,000 yen against an offender who received insider information from an employee of Oncolys BioPharma Inc. (hereinafter, “the Company”).

Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of the Company, using insider information, in violation of the Financial Instruments and Exchange Act.

Recommendation for administrative monetary penalty payment order against an employee of a company in negotiation to conclude a contract with AISIN SEIKI CO., LTD. for committing insider trading related to shares of AISIN SEIKI CO., LTD.

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 150,000 yen against an employee of a company in negotiation to conclude a contract with AISIN SEIKI CO., LTD. (hereinafter, “the Company”).

Based on an inspection, the SESC determined that the offender had committed insider trading by purchasing shares of the Company, using insider information, in violation of the Financial Instruments and Exchange Act.

Recommendation for administrative monetary penalty payment orders against two offenders, who committed market manipulation related to shares of Jorudan Co., Ltd.

＜Summary＞

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue administrative monetary penalty payment orders against offender (1) and offender (2), who committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the offenders had committed market manipulation for the purpose of inducing the sale and purchase of securities through bolstering share prices of Jorudan Co., Ltd. by placing successive purchase orders at higher prices than the contracted prices.

Through these techniques, the offenders 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 their favor.

26,730,000 yen penalty against offender (1)
700,000 yen penalty against offender (2)

Recommendation for administrative monetary penalty payment order against FREESIA MACROSS CORPORATION for making statements which lack significant matters in its disclosure documents.

＜Summary＞

SESC recommended that the Prime Minister and the Commissioner of the FSA impose an administrative penalty order of 12,000,000 yen against FREESIA MACROSS CORPORATION (hereinafter, “the Corporation”).

Through an inspection of the Corporation’s disclosure statements, the SESC confirmed that the Corporation failed to disclose the Corporation’s transactions with a member of the Corporation’s board of directors in the Notes on “Transactions with Related Parties” in its consolidated financial statements.