The Securities and Exchange Surveillance Commission on July 15 issued a recommendation to the finance minister to take punitive action against Nomura Securities Co. and four former Nomura executives for making illegal paybacks to a “sokaiya” corporate racketeer.

Nomura was given a maximum six-week order to suspend operations in 1991 after revelations surfaced of a loss-compensation scandal involving most of the nation’s major brokerage houses. Nomura could be ordered to suspend business for between four and five months this time, observers said. To date, the severest action taken against a securities firm by the ministry was the maximum eight-week ban on operations slapped on Chiyoda Securities Co. in March 1996.

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