Japan regulator calls for action against Nomura

TOKYO (AFP) - Japan's securities watchdog called on the government on Tuesday to take action against Nomura Holdings over its lax controls amid an embarrassing insider trading scandal at the brokerage.

The Securities and Exchange Surveillance Commission said in a statement that it had asked the Financial Services Agency to take unspecified "administrative action" against the country's biggest brokerage.

The call comes less than a week after Nomura chief Kenichi Watanabe and chief operating officer Takumi Shibata said they would step down to take responsibility for staff leaking material information to clients.

Japanese authorities are carrying out a wide-ranging probe into insider trading which, although illegal in Japan, is widespread and carries only token fines.