The head of the Tokyo Stock Exchange stepped up his attack on Japan's corporate governance yesterday, saying the exchange was almost powerless to stamp out bad practices that had damaged the market's reputation.
Atsushi Saito, who has led an assault on Japanese companies in recent months, said the country had to address serious problems to boost its financial sector.
"We don't have enforcing powers," said the exchange president.
"The TSE is a kind of quasi-private company. We are not a government organisation, so [unless there is a criminal breach], what we can do at most is to [issue] a warning."
Mr Saito said investors in TSE-listed companies had been subject to serious abuses by listed companies, which would not occur in other leading markets.
For example, it was possible in Japan to issue a large number of shares to a third party that diluted existing shareholders without disclosing the identity of that third party.
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