The Securities and Exchange Surveillance Commission filed a criminal charge with the Tokyo District Public Prosecutors Office against one suspect for violation of the Financial Instruments and Exchange Act (hereinafter "FIEA") (insider trading). The facts that are the subject of the criminal charge are as follows.
１．Facts That Are the Subject of the Criminal Charge
Around mid-July 2022, the suspect received a material fact concerning the business or other matters of istyle Inc. (hereinafter "istyle"), whose shares were listed on the securities market established by Tokyo Stock Exchange, Inc. (hereinafter "TSE"). The material fact was that the executive decision-making body of istyle had decided to enter into a business alliance with Amazon.com, Inc. and MITSUI & CO. LTD. and to issue unsecured convertible bonds, etc. to these companies as parties eligible for allocation. The material fact was provided by an employee of istyle who came to know the material fact in the course of duty. The suspect subsequently purchased a total of 50,000 istyle shares for a total of approximately 14.2 million yen on the TSE via a securities company in the name of an acquaintance in early August 2022, before the announcement of this fact despite no applicable exemption clause under the FIEA.２．Related Articles
Financial Instruments and Exchange Act
Article 197-2, item (xiii)of the Act (prior to amendment by Act No. 68 of 2022), Article 166, paragraph (3), paragraph (1), item (i), and paragraph (2), item (i), (a) and (p) of the Act, and Article 28, item (i) of the Order for Enforcement of the Act
