SESC Latest Topics No.78＜December 2021＞

Court issuance of prohibition and suspension against SKY PREMIUM INTERNATIONAL PTE. LTD. and one of its officers.

<Summary>

In response to a petition filed on September 17, 2021, by the SESC with the Tokyo District Court for an order of prohibition and suspension against SKY PREMIUM INTERNATIONAL PTE. LTD. and one of its officers for engaging in intermediation for the conclusion of Discretionary Investment Contracts on a regular basis without statutory registration, a court order was issued as per the content of the petition.

Recommendation for an administrative monetary penalty payment order against market manipulation relating to shares of gumi Inc.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 19,480,000 yen against individual investor who committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that individual investor had committed market manipulation for the purpose of inducing the sale and purchase of securities through (1) boosting the share price at the minimum trading unit or pushing up at a minimum cost, (2) placing layering buy orders at a lower price, and (3) boosting the share price by placing market-on-close orders.

Through these techniques, individual investor 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.

Recommendation for an administrative monetary penalty payment order against an officer of MAEDA CORPORATION, who committed insider trading.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 4,020,000 yen against an officer of MAEDA CORPORATION.
 
Based on an inspection, the SESC determined that individual investor had committed insider trading by purchasing shares of MAEDA CORPORATION and other securities using insider information, in violation of the Financial Instruments and Exchange Act.

Recommendation for an administrative monetary penalty payment order against market manipulation relating to shares of GNI Group Ltd. and other securities.

<Summary>

The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 16,670,000 yen against an individual investor who committed market manipulation in violation of the Financial Instruments and Exchange Act.

Based on an inspection, the SESC determined that the individual investor had committed market manipulation for the purpose of inducing the sale and purchase of securities through (1) pushing down the share prices of GNI Group Ltd. and other securities (hereinafter, “the Companies”) by placing layering sell orders at higher prices, and placing sell orders at lower prices than the last commitment value, and (2) pulling up the share prices of the Companies by placing layering buy orders at lower prices, and placing buy orders at higher prices than the last commitment value.
 
Through these techniques, the individual investor 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.