TOKYO, Feb. 13 (Xinhua/APP) –: The Tokyo District Court on Monday ordered SMBC Nikko Securities Inc. to pay a fine of 700 million yen (5.3 million U.S. dollars) and a forfeiture of 4.47 billion yen (about 33.7 million dollars) for stock price manipulation.
According to the ruling, SMBC Nikko illegally propped up the prices of 10 individual stock issues before selling them in so-called block offering transactions, which violated Japan’s financial instruments and exchange law.
In a block offering transaction, brokerage houses buy large amounts of shares from major shareholders and sell them to investors in off-hours trading, and profits from the difference between the purchase and sale prices.
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