The Financial Services Agency said Monday it will consider imposing stricter punishments on companies and executives who fail to disclose important information when trading securities.
The financial watchdog’s suggestion of harsher rules follows the arrest of Takafumi Horie for alleged securities laws violations. Horie was president of high-flying Internet startup Livedoor Co. until last week.
Under the Securities and Exchange Law, failure to disclose important information related to a company’s business in a stock transaction is punishable by up to five years in prison, a fine of up to 5 million yen, or both. Companies can be fined up to 500 million yen.
“It has been pointed out that the punishment is insufficient,” FSA Commissioner Hirofumi Gomi said. “We would like to consider reviewing the punishment.”
TSE upgrades system
The Tokyo Stock Exchange upgraded its computerized trading system Monday for the first time in more than 11 years. The new system, introduced by the TSE and Japan Securities Clearing Corp., will increase the maximum number of transactions executed per day to 8 million.
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