Japan’s Financial Services Agency has ordered a former senior managing director of truck maker Nissan Diesel Motor, now a subsidiary of Volvo AB, to pay a fine of JPY200,000 for insider trading of the maker’s shares in February 2007.
The former executive bought 2,000 Nissan Diesel shares for JPY870,000 on the basis of insider information before it was announced on 20 February, 2007 that the Volvo group would start a tender offer for the truck maker, the financial market regulator said.
The former executive sold the shares on the day of the announcement, taking a profit.
The Securities and Exchange Surveillance Commission, a government watchdog, recommended on 4 August the FSA fine the executive for the insider trading in breach of the Financial Instruments and Exchange Law.
The former executive left the company in June this year as the company’s in-house survey found out about his transaction, Kyodo News reported.