SESC Latest Topics No.101＜October 2024＞

Recommendation for an administrative monetary penalty payment order against spreading of rumors in the shares of Human Metabolome Technologies Inc.

<Summary>
 The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 2,090,000 yen against an individual investor who committed spreading of rumors in violation of the Financial Instruments and Exchange Act.
 
 As a result of its investigation, the SESC found that the individual investor committed spreading of rumors by posting information about the Company on the electronic bulletin board ”Yahoo! Finance” without reasonable grounds in an attempt to gain profits by raising the price of the Company’s shares and selling them off. In this way, the individual investor raised the price of Company’s shares by spreading the rumors available to the general public for the purpose of trading securities and causing a fluctuation in the market price. 

Recommendation for an administrative monetary penalty payment order against insider trading in the shares of MINKABU THE INFONOID, Inc. (“Company”) by a person (“Tippee”) who was tipped by an officer of the Company. 

<Summary>
 The SESC recommended that the Prime Minister and the Commissioner of the FSA issue an administrative monetary penalty payment order of 350,000 yen against 　insider trading in the Company’s shares by the Tippee.
 
 As a result of its investigation, the SESC found that the Tippee was tipped by an officer of the Company, who had learned of material nonpublic information about changes to the shareholder structure of the subsidiary during the course of one’s duties, and the Tippee then purchased the Company’s shares based on the information in violation of the Financial Instruments and Exchange Act.