Business

Nippon Life unit faces fine

Kyodo

The brokerage industry watchdog was expected to recommend that the Financial Services Agency order a Nippon Life Insurance Co. subsidiary to pay a fine for insider trading on unreleased information, market sources said Monday.

The Securities and Exchange Surveillance Commission was expected to make the recommendation on the fine, estimated at hundreds of thousands of yen, Monday afternoon against Nissay Asset Management Corp., which was set up in Tokyo in 1995, the sources said.

Nissay Asset allegedly traded stocks after obtaining information from a Nomura Securities Co. trader that Inpex Corp. would increase its capital through a public offering of new shares before its release in July 2010.

When a listed firm boosts its capital base, its per-share value will mostly fall as the number of its shares circulating in the market will increase.

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