TOKYO (Reuters) – Japan's securities industry regulator is conducting interviews with brokerages in connection with suspicious trading ahead of new share offers, a source familiar with the matter said on Monday.

The Securities and Exchange Surveillance Commission is checking with brokerages on their compliance regimen regarding share underwritings, and specifically how they ensure confidentiality of information when they sound out institutional investors to gauge potential demand for new shares, said the source, who asked not to be identified because he was not authorized to discuss the matter publicly.

The Tokyo Stock Exchange said on Friday it was looking into complaints about heavy short-selling of stocks of companies days ahead of their announcement of capital raising plans.

(Reporting by Taiga Uranaka and Noriyuki Hirata; Editing by Edmund Klamann)

Source