JSDA To Restrict Pre-Hearing By Brokerage Houses Before IPO

The Nikkei Newspaper has reported that the Japan Securities Dealers Association (JSDA) will be establishing the rules as of January 2007 to restrict pre hearing by brokerage houses for interviewing investors before Initial Public Offering. In 2003, Investors in the

By None

The Nikkei Newspaper has reported that the Japan Securities Dealers Association (JSDA) will be establishing the rules as of January 2007 to restrict pre-hearing by brokerage houses for interviewing investors before Initial Public Offering.

In 2003, Investors in the UK and Singapore, who obtained the confidential information through pre-hearing, were alleged to be involved in insider-trading. After the incident, the Cabinet Office Ordinance to regulate pre-hearing by brokerage houses was enforced in November 2006.

According to the Nikkei Newspaper, the restriction period imposed on the interviewee in question will be two years and the pre-hearing in Japan will be banned.

«