Japan to Act Against Brokers' Insider Info Leaks

Japan's banking minister said Friday that the authorities would take "rigorous measures" against brokerages found to have had problems in the handling of confidential information, calling a series of alleged leaks related to share offerings by Nomura Holdings Inc. (8604.TO) "extremely regrettable."

"Generally speaking, rigorous measures will be taken in line with the law" if such problems are found, Financial Services Minister Tadahiro Matsushita said at a news conference.

Mr. Matsushita was responding to reports that Nomura plans to suspend parts of its businesses for a week and punish people responsible for a series of alleged leaks of confidential information on share offerings.

Earlier this month, Nomura confirmed that some of its employees played a part in leaking information linked to the share offerings in 2010 by Inpex Corp. (1605.TO), Mizuho Financial Group Inc. (8411.TO), and Tokyo Electric Power Co. (9501.TO).

The minister declined to comment specifically on what regulatory action will be taken against Nomura and on whether Nomura executives should step down in light of the leaks.

"It is extremely regrettable," Mr. Matsushita said, adding that it was a "grave situation" that such repeated leaks are allegedly occurring at Japan's largest brokerage.

A person familiar with the matter said Nomura will hold a press conference later Friday to disclose the results of an investigation by outside lawyers into the leaks.

Write to Kana Inagaki at kana.inagaki@dowjones.com