The head of the Japan Securities Dealers Association said Friday that the industry should not contribute funds to a share-buying body proposed by the ruling coalition.
"The securities industry should not participate (in the plan) because it is a party directly involved in the stock market," Eiichiro Okumoto said at a news conference.
On Mar. 9, the ruling bloc proposed creating a privately-funded organ to purchase shares to prop up stock prices.
Okumoto said the securities industry is unable to assess the proposal until its details become available.
But he said that as the proposal is partly considered a step to prohibit banks from holding shares, so as to shield them from stock price fluctuations, it may be meaningful to pool shares if the ban is enacted.
But he added, "Artificial manipulation of stock prices should be avoided, if possible."