The Japan Securities Dealers Association said Tuesday it has imposed a penalty of ¥100 million on BNP Paribas Securities (Japan) Ltd. over its profit from a dubious transaction with now-defunct real estate developer Urban Corp.
The association said it also suspended the membership of the Japanese unit of France's BNP Paribas for six months for causing a "serious loss of public trust in the securities industry."
BNP Paribas said in a statement it will take the sanctions seriously and implement measures to improve governance and internal controls.
The brokerage was accused of trading a greater number of shares in Urban in June 2008 than stipulated in a contract between the two firms.
In November 2008, the Financial Services Agency ordered BNP Paribas to improve its business practices after the French financial services group failed to disclose crucial information to investors related to the transaction.
Just last week, BNP Paribas was once again put in the spotlight after the Securities and Exchange Surveillance Commission recommended that the FSA discipline it for manipulating the stock price of Internet conglomerate Softbank Corp.