Short-selling in breach of the Law
In November 2001 the company executed short-selling of stocks by clients' order without legally required disclosure of the fact of short-selling to the stock exchange many times, because the company did not confirm whether or not the sale of the stocks were short sales.
In addition, the company was found to have conducted short sales at a price lower than the latest published price immediately prior to the short sale.
In November 2001 the company executed short-selling of stocks on its own account without legally required disclosure of the fact of short-selling to the stock exchange many times, because the company did not confirm its own position.
The conduct above was found to violate the Article 26-3 (1) and (2), the Article 26-4 (1) of the Cabinet Order (the Securities and Exchange Law) and the Article 162 (1) (i) of the Law, both of which regulate short-selling.
