Kanematsu Electronics Ltd. has acknowledged that a board member was involved in an act that could be regarded as insider trading.
The trading house will dismiss the executive, who was allegedly trying to take advantage of Kanematsu Electronics’ tieup with an information service company, and continue looking into the case, President Noboru Kinoshita told a news conference Thursday.
An in-house probe found that a relative of the executive had purchased Kanematsu Electronics shares prior to the company’s March 22 announcement of a capital and business tieup agreement with Information Services International-Dentsu Ltd., the computer peripherals firm said.
The relative, who bought 6,000 Kanematsu Electronics shares on March 7, still holds them, Kinoshita said.
The Securities and Exchange Law prohibits trading in shares of a company based on information available to insiders before its disclosure to the public.
The closing price of Kanematsu Electronics shares Thursday was 795 yen, up 320 yen from March 7.
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