Japan to give companies more transparency on unnamed shareholders

Updated code would lower hurdles to identifying investors behind custodians

20240416N Board Tokyo REUTERS

Institutional investors frequently hold shares in companies through custodial banks that safeguard their assets. © Reuters

SORA KITAJIMA, Nikkei staff writer

TOKYO -- Japanese financial authorities plan to make it easier for companies to identify who actually controls stakes in them, aiming to better facilitate communication between management and shareholders.

The Financial Services Agency will update the stewardship code for institutional investors as early as this fiscal year, which ends March 2025. The new rules under consideration would have institutional investors disclose their holdings in a company if it asks.

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