The Japan Securities and Exchange Surveillance Commission (SESC) published a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency to issue a surcharge payment order after finding market manipulation involving shares of Base Food Co., Ltd. and two other Tokyo Stock Exchange-listed companies. The total surcharge amount subject to the recommended order is JPY 6.27 million. SESC identified Tokyo Stock Exchange, Inc. as the person subject to the surcharge order and set out three instances of conduct intended to induce trading and mislead the market about activity, including placing large sell orders at upper price levels to thicken the sell board while buying at lower levels, and placing large buy orders at lower price levels to thicken the buy board before selling at higher levels. The conduct covered Base Food (Growth Market) from 5 October to 27 November (Reiwa 5), Gunosy (Prime Market) from 10 October to 5 December (Reiwa 5), and Nippon Gear Industry (Standard Market) from 5 to 14 December (Reiwa 5), with detailed figures provided for entrusted and executed purchases and sales in each case. SESC assessed the acts as a series of securities transactions violating Article 159, Paragraph 2, Item 1 of the Financial Instruments and Exchange Act and as “consignment, etc.” under Article 174-2, Paragraph 1, and noted that the facts were clarified with reference to information provided by the Japan Exchange Self-Regulatory Corporation.
Japan Securities and Exchange Surveillance Commission 2026-04-17
Japan Securities and Exchange Surveillance Commission recommends JPY 6.27 million surcharge order for manipulation of Base Food, Gunosy and Nippon Gear Industry shares
The Japan Securities and Exchange Surveillance Commission recommended that the Prime Minister and the Financial Services Agency Commissioner issue a JPY 6.27 million surcharge order for market manipulation involving shares of Base Food Co., Ltd., Gunosy and Nippon Gear Industry on the Tokyo Stock Exchange. The Commission identified Tokyo Stock Exchange, Inc. as the subject of the order, citing transactions intended to induce trading and mislead the market in violation of the Financial Instruments and Exchange Act, based partly on information from the Japan Exchange Self-Regulatory Corporation.