The Securities and Exchange Surveillance Commission recommended Wednesday that financial regulators punish Minami Securities Co. for fraudulently selling corporate bonds, commission officials said.
The securities watchdog's recommendation was issued to the Financial Reconstruction Commission and the Financial Supervisory Agency after authorities discovered that Minami Securities, a small brokerage house based in Maebashi, Gunma Prefecture, had sold 210 million yen worth of corporate bonds issued by three paper companies to 51 investors in November.
The presidents of the three companies had no knowledge of the bond sales, the officials said.