SMBC Nikko Pleads Guilty to Market Manipulation
Tokyo, Oct. 28 (Jiji Press)--Japan's SMBC Nikko Securities Inc. pleaded guilty to stock price manipulation by former senior employees in the first hearing of its trial at Tokyo District Court on Friday.
Representing the company, President Yuichiro Kondo told the court that there is "no mistake" in the accusations against the company.
"We've received administrative punishment and caused problems to our customers and other people concerned. We deeply apologize," he said.
Prosecutors indicted six former SMBC Nikko executives for their involvement in trade actions to underpin stock prices in violation of the financial instruments and exchange law. The number of companies affected by the practice is believed to reach 10.
The brokerage unit of Sumitomo Mitsui Financial Group Inc. <8316> was also indicted as a corporation under the so-called dual liability rule of the law that also holds the employer responsible for an illegal act by its employees.
[Copyright The Jiji Press, Ltd.]