The government of Prime Minister Noboru Takeshita, rocked by a stock trading scandal, decided today to tighten controls on insider trading beginning April 1, Finance Minister Tatsuo Murayama said.
Murayama told reporters that the decision is aimed at “preventing unfair stock trading in order to promote the sound development of the stock exchange amid the internationalization of share transactions.”
The new law will regulate stock trading by corporate executives and officials having access to secret information.
Government officials said an ordinance regulating insider trading was adopted at a Cabinet session today. It will be formally announced Friday, they said.
The new law calls for corporations to properly disclose important information to investors and not to limit access of the press to such information, they said.