CHAPTER I General Provisions

(Purpose) Article 1. The purpose of this Law is to cause the investment in securities easier for general investors by establishing a securities investment trust system for the protection of the beneficiaries of securities investment trust.

(Definition) Article 2. The term "securities investment trust" as used in this Law, shall mean any trust the purpose of which is to manage the trust property as investment in specific securities under the direction of the trustor and also to split up the beneficiary ownership thereof to have many and unspecific persons acquire such ownership. 2 The term "securities" as used in this Law, shall mean the securities as prescribed in Article 2 paragraphs 1 and 2 of the Securities and Exchanges Law (Law No.25 of 1948).

(Prohibition of Trust Aiming at Securities Investment other than Securities Investment Trust) Article 3. No person shall contract any trust other than the securities investment trust, which is to invest any trust property the purpose of which is mainly in securities;provided, however;that this shall not apply any trust contract the purpose of which is not to split up the beneficiary ownership of such trust and to have many and unspecific persons acquire such ownership.

(Trustor and Trustee of Securities Investment Trust) Article 4. No securities investment trust contract (hereinafter referred to as "trust contract" ) shall be concluded, unless it provides for as the trustor a company (hereinafter referred to as "trustor company" ) which is registered in the Securities Investment Trust Trustor Registration Ledger (hereinafter referred to as "registration ledger" ) provided in the Securities and Exchanges Commission and as the trustee a trust company or a bank engaging in trust business. 2 Any other than joint-stock company with a capital of fifty million (50,000,000) yen or more shall not be a trustor company.

(Beneficiary Certificate) Article 5. The beneficiary ownership of every securities investment trust shall be equally split up and such split up beneficiary ownership shall be represented by a beneficiary certificate. 2 Every split up beneficiary ownership of securities investment trust shall be exercised or transferred by the beneficiary certificate, unless represented by a registered beneficiary certificate. 3 Every beneficiary of a securities investment trust shall have an equal right with respect to the redemption of the corpus of trust and the distribution of income in proportion to the number of beneficiary ownership. 4 No beneficiary certificate shall be registered, unless registered upon demand of the beneficiary. 5 Every registered beneficiary certificate may be changed to a bearer form upon demand of the beneficiary. 6 Every beneficiary certificate shall state the following matters and the number thereof and shall be signed by a director: (1) Trade names of the trustor and trustee; (2) Amount of the corpus of trust and total number of beneficiary ownership at the time of conclusion of trust contract; (3) Term of the trust contract; (4) The time and place of the redemption of the corpus of trust and the distribution of income; (5) The method of calculating the trust remunerations and other fees to the trustee and trustor and the method and time of payment thereof.

CHAPTER II Registration of Trustor Company

(Application for Registration) Article 6. Every company intending to be a trustor company shall submit an application statement for registration stating the following particulars to the Securities and Exchanges Commission: (1) Trade-name and the amount of capital; (2) Names and locations of the principal office, branch offices and other business offices; (3) Name of each director. 2 The application statement for registration as mentioned in the preceding paragraph shall be accompanied with the following documents: (1) Articles of association; (2) A copy of the registration book of the company; (3) Curricula vitae of the directors, extracts of their census registry or the certificates as prescribed in the provision of Article 10 paragraph 1 of the Census Registration Law (Law No.224 of 1947) and a statement vowing that they are not those who come under any of the sub-items a. to e. inclusive of Article 9 paragraph 1 item (4).

(Registration) Article 7. When an application for registration is made in accordance with the provision of paragraph 1 of the preceding Article, the Securities and Exchanges Commission shall, except in cases where such registration is to be denied in accordance with the provision of Article 9 paragraph 1 or 2, enter the following particulars in the registration ledger within thirty (30) days from the date of receipt of such application statement for registration: (1) Trade name and the amount of capital; (2) Names and locations of the main office, branch offices and other business offices; (3) Name of each director; (4) Date of registration. 2 When the Securities and Exchanges Commission has made entry in accordance with the provisions of the preceding paragraph, the Commission shall notify in writing the applicant concerned to that effect and of the date of registration without delay.

(Registration Fee) Article 8. When the applicant has received the notice as mentioned in paragraph 2 of the preceding Article, he shall pay a registration fee of thirty thousand (3,000) yen within thirty (30) days from the date of his receipt of the notice. 2 The registration fee as mentioned in the preceding paragraph shall be paid with a revenue stamp or stamps corresponding to the amount of registration fee by affixing it or them on the statement for payment of registration fee. 3 The applicant shall not make any trust contract prior to the payment of his registration fee. 4 As regards any person who does not pay the registration fee within the period prescribed in paragraph 1, the Securities and Exchanges Commission may cancel his registration, after giving notice to him and opportunity for hearing. 5 The Securities and Exchanges Commission shall, in the case of cancellation of registration under the provisions of the preceding paragraph, notify such trustor company to that effect without delay.

(Denial of Registration) Article 9. In cases wherein an application under the provision of Article 6 paragraph 1, is made, if the Securities and Exchanges Commission has reason to believe that the applicant comes under any of the following items, or that registration statement or documents attached thereto include any untrue statement of material fact or omit to state any material fact, the Commission shall deny such registration, after giving notice to the applicant and opportunity for hearing: (1) A person who is not a joint-stock company with a capital of fifty million (50,000,000) yen or more; (2) A company which was fined in accordance with the provisions of this Law or the Securities and Exchanges Law and for which five (5) years have not elapsed after the execution was completed or exempted; (3) A company whose registration was cancelled in accordance with the provisions of Article 22 paragraph 1 item (2) or (4), being registered through dishonest means, or in accordance with the provisions of Article 39 paragraph 2, Article 40 paragraph 3, Article 57 paragraph 1 or Article 59 of the Securities and Exchanges Law and for which five (5) years have not elapsed thereafter; (4) A company any of whose directors comes under any of the following sub-items a. to e. inclusive: a. A bankrupt who is not reinstated; b. Any person who was sentenced to a punishment heavier than imprisonment or to imposition of monetary penalty in accordance with the provisions of this Law and the Securities and Exchanges Law and for whom five (5) years have not elapsed after the execution was completed or exempted; c. Any person whose registration was cancelled in accordance with the provisions of Article 39 paragraph 2, Article 40 paragraph 3, Article 57 paragraph 1 or Article 59 of the Securities and Exchanges Law and for whom five (5) years have not elapsed from the date of such cancellation; d. In cases where a trustor company was cancelled its registration in accordance with the provisions of Article 22 paragraph 1 item (1), or a company which was a securities dealer was cancelled its registration in accordance with the provisions of Article 39 paragraph 2, Article 40 paragraph 3, Article 57 paragraph 1 or Article 59 of the Securities and Exchanges Law, any person who had been a director or executive officer of such company at a time within thirty (30) days preceding the date of such cancellation and for whom five (5) years have not elapsed from the date of such cancellation; e. Any officer who was dismissed in accordance with the provisions of Article 23 paragraph 1 item (2) or of Article 59 of the Securities and Exchanges Law and for whom five (5) years have not elapsed from the date of such disposal. 2 Except for the cases coming under the provisions of the preceding paragraph, when the applicant is a company which is engaging or about to engage in any business other than that relating to the trust contract, if the Securities and Exchanges Commission has reason to believe that the concurrent engagement in the business other than that relating to such trust contract is inappropriate the public interest or for the protection of investors, the Commission shall deny its registration, after giving notice to such applicant and opportunity for hearing. 3 When the Securities and Exchanges Commission has denied registration in accordance with the provisions of the preceding two paragraphs, the Commission shall notify the applicant concerned to that effect and of the reason therefor in writing without delay.

(Filing of Amendment Statement) Article 10. Every trustor company shall, when there is any change in the matters as enumerated in Article 7 paragraph 1 items (1) to (3) inclusive, file an amendment statement stating such changed matters with the Securities and Exchanges Commission without delay. 2 The amendment statement as mentioned in the preceding paragraph shall, except in cases wherein such change is concerned with the title or location of business offices other than the main office and/or any branch offices of the company, be accompanied with the following documents: (1) A statement certifying such change; (2) When such change is related to an officer newly appointed, the documents as enumerated in Article 6 paragraph 2 item (3) relating to such officer.

(Erasure of Registration) Article 11. When a trustor company comes under any of the following items, the Securities and Exchanges Commission shall erase the registration of such trustor company without delay;provided, however, that in the cases coming under item (2) or (3), the Commission shall, except in cases where a filing is made in accordance with the provisions of paragraph 2, give notice in advance and opportunity for hearing to the representative or ex-representative of such trustor company. (1) When its registration of trustor company is cancelled in accordance with the provision of Article 8 paragraph 4 or Article 22 paragraph 1; (2) When it is dissolved; (3) When it discontinued its business of trustor of securities investment trust. 2 When a trustor company comes under item (2) or (3) of the preceding paragraph, the representative or ex-representative of such trustor company shall file such fact with the Securities and Exchanges Commission without delay.

CHAPTER III Business of Trustor Company

(Conclusion of Trust Contract) Article 12. Every trustor company intending to conclude a trust contract shall make such trust contract based on the clauses of securities investment trust contract (hereinafter referred to as "trust clause" ) for which the approval of the Securities and Exchanges Commission has previously been granted. 2 Every trust clause shall provide for the following matters: (1) The trustor and trustee; (2) Matters relating to the business as the trustor and trustee; (3) Matters relating to the amount of the corpus of trust; (4) Matters relating to beneficiary certificates; (5) Matters relating to the custody and management of the corpus of trust and income; (6) Matters relating to the redemption of the corpus of trust and the distribution of income; (7) Matters relating to the term of trust contract, its extension and the cancellation prior to its expiration; (8) Matters relating to the method of calculation of the trust remunerations and other fees for the trustor and trustee and the method and the time of payment thereof; (9) Matters relating to the amendment to the trust clause; (10) Other matters as may be prescribed by the Securities and Exchanges Commission in a Securities and Exchanges Commission Regulation as necessary and appropriate in the public interest or for the protection of investors.

(Approval of Trust Clause) Article 13. Every trustor company intending to receive the approval under the provision of paragraph 1 of the preceding Article shall submit to the Securities and Exchanges Commission an application statement for approval together with a document stating the trust clause. 2 When an application for approval under the provisions of the preceding paragraph is made, the Securities and Exchanges Commission shall, except in the case of denial of approval under the provision of paragraph 3, grant its approval within thirty (30) days from the date of acceptance of such application statement for approval. 3 When, in case where an application for approval under the provision of paragraph 1 is made, the contents of the trust clause are in contravention of laws and ordinances or inappropriate in the public interest or for the protection of investors, or the document stating the trust clause includes untrue statement of material fact or omits to state material fact, the Securities and Exchanges Commission shall deny its approval, after giving notice to the trustor company and opportunity for hearing. 4 The Securities and Exchanges Commission shall, in the case of approval or denial of approval under the provisions of the preceding two paragraphs, notify the trustor company to that effect in writing without delay. In this case, the notice of denial of approval shall state the reason therefor.

(Approval of Amendment to Trust Clause) Article 14. Every trustor company intending to amend its trust clause shall obtain the approval of the Securities and Exchanges Commission with respect to the matters to be amended. 2 The provisions of the preceding Article shall apply mutatis mutandis to the case of approval for amendment under the provisions of the preceding paragraph. In this case, the term "trust clause" as used in paragraph 1 of the preceding Article shall read "matters to be amended and reason for proposed amendment" , and "trust clause" as used in paragraph 3 of the same Article, shall read "matters to be amended" .

(Approval of Cancellation of Trust Clause) Article 15. Every trustor company intending to cancel its trust clause shall obtain the approval of the Securities and Exchanges Commission. 2 When the Securities and Exchanges Commission has reason to believe that the cancellation of any trust clause is either in contravention of such trust clause or inappropriate in the public interest or for the protection of investors, the Commission shall deny its approval, after giving notice to the trustor company concerned and opportunity for hearing. 3 The provisions of Article 13 paragraphs 1, 2 and 4 shall apply mutatis mutandis to the case of approval of cancellation under the provisions of paragraph 1. In this case, "trust clause" as used in paragraph 1 of the same Article shall read "reason for proposed cancellation" and "paragraph 3" as used in paragraph 2 of the same Article shall read "Article 15 paragraph 2" .

(Prohibition of Directions to Underwrite Securities, Etc.) Article 16. No trustor company shall issue directions to the company which is the trustee of a trust property (hereinafter referred to as "trustee company" ) to underwrite securities with the trust property of securities investment trust (hereinafter referred to as "trust property" ) or to lend money out of such trust property. 2 The term "to underwrite securities" as used in the preceding paragraph, shall mean any contract to acquire securities for the purpose of selling securities by public offering (meaning the sale of securities by public offering as prescribed in Article 2 paragraph 4 of the Securities and Exchanges Law;hereinafter the same) or to acquire the unsold part of securities when, at the time of issue of securities by public offering (meaning the issue of securities by public offering as prescribed in paragraph 3 of the same Article of the same Law;hereinafter the same), or of the sale of securities by public offering, there is no more person to acquire such securities.

(Restrictions of Directions to Acquire Securities of Trustor Company) Article 17. No trustor company shall direct its trustee company to do the following acts;provided, however, that this shall not apply to the case of direction to make such action through the securities market (meaning the securities market as provided in Article 2 paragraph 12 of the Securities and Exchanges Law): (1) By the use of the trust property, to acquire any security held by it or by its officers or major stockholders (meaning stockholders who own ten (10) per centum or more shares of the issued stock either in his own name or in the name of other persons (including fictitious person)); (2) To sell or lend any security held as the trust property to such persons as prescribed in the preceding item.

(Prohibition of Other Business) Article 18. Every trustor company intending to engage in any business other than that related to the trust contract shall obtain the approval of the Securities and Exchanges Commission. 2 The Securities and Exchanges Commission shall, if the concurrent engagement by a trustor company in the business other than that related to the trust contract is deemed to be inappropriate in the public interest or for the protection of investors, deny its approval, after giving notice to such trustor company and opportunity for hearing. 3 The provisions of Article 13 paragraphs 1 and 4 shall apply mutatis mutandis to the case of approval under the provisions of paragraph 1. In this case, "trust clause" as used in paragraph 1 of the same Article shall read "the contents of the business to be engaged in thereby and reason for proposed engagement in such business" .

(Report on Trust Property) Article 19. Every trustor company shall, for every six (6) months from the date of making its trust contract, prepare a report on the trust property under such trust contract for such period in such a form as may be prescribed by a Securities and Exchanges Commission Regulation, and submit the same to the Securities and Exchanges Commission within two (2) months from the date of expiration of such period. 2 When a trust contract has expired, every trustor company shall prepare a statement of final accounting relating to the trust property under such trust contract in such a form as may be prescribed by a Securities and Exchanges Commission Regulation, and submit the same to the Securities and Exchanges Commission within two (2) months from the date of expiration of such trust contract.

(Books and Documents related to Trust Property, Etc.) Article 20. Every trustor company shall prepare the books and documents relating to the trust property and otherwise related to its business, as may be prescribed by the Securities and Exchanges Commission in a Securities and Exchanges Commission Regulation as necessary and appropriate in the public interest or for the protection of investors. 2 Every trustor company shall preserve its books and documents related to its trust property for five (5) years after the expiration of such trust contract. 3 Every beneficiary may demand the trustor company during its business hours to peruse or transcribe any book or document relating to the trust property related to such beneficiary.

CHAPTER IV Supervision

(Collection of Report and Examination) Article 21. The Securities and Exchanges Commission may, if deemed necessary and appropriate in the public interest or for the protection of investors, collect from any trustor or trustee company a report and datum relating to the securities investment trust, or cause the competent officials to make examinations of the books and documents relating to the trust property and otherwise related to the business of the trustor company. 2 In the case of making examinations of books and documents in accordance with the provisions of the preceding paragraph, every competent official shall carry with him an identification card, and upon demand by the person concerned, shall show it to such person. 3 The power to collect a report or datum and to examine under the provision of paragraph 1 shall not be construed as being admitted for criminal investigations.

(Disposal for Supervision) Article 22. When a trustor company comes under any of the following items, the Securities and Exchanges Commission shall cancel the registration thereof, after giving notice to such trustor company and opportunity for hearing: (1) When it comes under any of items (1) to (3) inclusive of Article 9 paragraph 1; (2) When it is found to have been under any of items (1) to (3) inclusive of Article 9 paragraph 1 at the time of its registration; (3) When it comes under any of the sub-items a. to d. inclusive of Article 9 paragraph 1 item (4); (4) When it is found to have been under the provisions of item (4) of Article 9 paragraph 1. 2 In the case of cancellation of registration under the provision of the preceding paragraph, if the Securities and Exchanges Commission has reason to believe that the continuation of the trust contract of such trustor company is necessary and appropriate in the public interest or for the protection of investors, the Commission may order such trustor company to hand over its business related to such trust contract to any other trust company, after obtaining the consent of the trustee company related to such trust contract and of such another trustor company. 3 In cases where an order has been issued for the hand over of business related to a trust contract under the provisions of the preceding paragraph the Securities and Exchanges Commission shall notify the trustee company and the successor company to that effect without delay. 4 The provision of Article 9 paragraph 3 shall apply mutatis mutandis to the case of cancellation of registration under the provision of paragraph 1.

Article 23. When a trustor company or any of its directors comes under any of the following items, the Securities and Exchanges Commission may make disposals as enumerated in such items with respect to such trustor company or the company to which such director belong, after giving notice to such trustor company or director and opportunity for hearing: (1) In cases where the continuation of the trust contract under the trust clause in force is deemed inappropriate in the public interest or for the protection of investors due to the reason that the trustor company is in violation of laws and ordinances or that execution of its business is inadequate, the following disposals: a. To order the cancellation of such trust contract; b. To order the hand over of the business related to such trust contract to another trustor company after obtaining the consent of the trustee company related to such trust contract and of such another trustor company; c. Except for the case of sub-item b. to order the alteration of such trust clause. (2) In cases where a trustor company is in violation of laws and ordinances or its trust contract, or its directors are in violation of laws and ordinances, to order the dismissal of the directors who made such violation. 2 The provision of paragraph 3 of the preceding Article shall apply mutatis mutandis to the case of disposal under the provision of subitem b. item (1) of the preceding paragraph. 3 The provision of Article 9 paragraph 3 shall apply mutatis mutandis to the case of disposal under the provision of paragraph 1.

(Publication Order) Article 24. The Securities and Exchanges Commission may, in the cases coming under any of the following items, if deemed necessary and appropriate in the public interest or for the protection of investors, order any trustor company to publish the whole or part of the matters as enumerated in such items in a newspaper pursuant to the directions of the Commission: (1) In the case of approval of amendments to the trust clause under the provision of Article 14 paragraph 1, matters under such approval of amendments; (2) In the case of receiving submission of report on the trust property under the provision of Article 19 paragraph 1, matters stated in such report.

CHAPTER V Miscellaneous Provisions

(Exemption from the Antimonopoly Law) Article 25. The provisions of Article 11 paragraphs 1 and 2 of the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Law No.54 of 1947) shall not apply to cases where a trustee company acquires or owns any stock with the trust property, provided, however, that this shall not apply when such trustee company exercises the voting right of such stock for itself.

(Cancellation of Trust Contract and Publication Thereof, Etc.) Article 26. When a trustor or trustee company comes under any of the following items, such trustor company (when such trustor company is dissolved as a result of amalgamation, the company existing after the amalgamation or the company established through the amalgamation) shall cancel the trust contract related to such trustor company without delay: (1) When the trustor company is cancelled its registration of trustor company in accordance with the provision of Article 22 paragraph 1; (2) When the trustor company is dissolved; (3) When the trustor company discontinued its business as trustor of securities investment trust; (4) When the trustee company is no longer a trust company or a bank engaging in the trust business due to the cancellation of its licence of business. 2 The provision of the preceding paragraph shall not apply to the cases coming under any of the following items: (1) When a trustor company comes under the provisions of item (1) of the preceding paragraph, another trustor company succeeded the business related to the trust contract pursuant to the order by the Securities and Exchanges Commission under the provision of Article 22 paragraph 2; (2) In the case of dissolution of a trustor company as a result of amalgamation, when the company remaining in existence after such amalgamation is the trustor company; (3) In the case of dissolution of a trustor company as a result of amalgamation, when the company established through such amalgamation applied for registration in accordance with the provision of Article 6 paragraph 1 without delay and registered. 3 Every trustor company or a company which had been a trustor company shall, in the case of cancellation of its trust contract or succession of its business related to such trust contract, publish such fact without delay in a daily newspaper reporting current affairs.

(Application of the Securities and Exchanges Law to the Case of Hearing) Article 27. The provisions of Articles 182,183 and 186 of the Securities and Exchanges Law (Procedures of Hearing and Disposals for the Investigation relating to Hearings) shall apply mutatis mutandis to the hearings under the provisions of this Law.

(Enforcement Provision) Article 28. The procedures for the enforcement of this Law and other matters necessary for the administration thereof shall be prescribed by Securities and Exchanges Commission Regulations.

CHAPTER VI Penal Provisions

Article 29. Any person who has violated the provision of Article 3 or Article 4 paragraph 1 shall be punished with penal servitude not exceeding three (3) years or a fine not exceeding three hundred thousand (300,000) yen or both.

Article 30. In the following cases, the representative, agents, employees or other persons in the service of the trustor company who have committed such acts shall be punished with penal servitude not exceeding three (3) years or a fine not exceeding three hundred thousand (300,000) yen or both: (1) When violated the provisions of Article 16 paragraph 1 or Article 17; (2) When engaged in any other business without the approval in violation of the provision of Article 18 paragraph 1.

Article 31. Any person who has violated the provisions of Article 5 paragraph 1 shall be punished with penal servitude not exceeding one (1) year or a fine not exceeding one hundred thousand (100,000) yen or both.

Article 32. In the following cases, the representative, agents, employees or other persons in the service of the trustor company or the company which had been a trustor company, who has committed such acts shall be punished with penal servitude not exceeding one (1) year or a fine not exceeding one hundred thousand (100,000) yen or both: (1) When violated the provision of Article 8 paragraph 3; (2) When made a trust contract in violation of the provision of Article 12 paragraph 1; (3) When amended the trust clause without approval in violation of the provision of Article 14 paragraph 1; (4) When cancelled a trust contract without approval in violation of the provisions of Article 15 paragraph 1; (5) When violated an order under the provision of Article 22 paragraph 2; (6) When violated any disposal made under the provision of Article 23 paragraph 1 item (1); (7) In cases where a disposal under the provision of Article 23 paragraph 1 item (2), is made when no procedure is taken for the dismissal of the director concerned; (8) When violated the provision of Article 26 paragraph 1.

Article 33. Any person who has made an untrue statement in the application statement for registration under the provision of Article 6 paragraph 1 or in the documents attached thereto shall be punished with penal servitude not exceeding six (6) months or a fine not exceeding fifty thousand (50,000) yen or both.

Article 34. In the following cases, the representative, agents, employees or other persons in the service of the trustor company who has committed such acts shall be punished with penal servitude not exceeding six (6) months or a fine not exceeding fifty thousand (50,000) yen or both: (1) When failed to submit the amendment statement under the provision of Article 10 paragraph 1 or submitted such amendment statement or the documents attached thereto including an untrue statement; (2) When submitted the application statement for approval under the provision of Article 13 paragraph 1 (including the cases where the said provision applies mutatis mutandis in Article 14 paragraph 2, Article 15 paragraph 3 and Article 18 paragraph 3) or the documents attached thereto, including an untrue statement.

Article 35. In the following cases, the representative, agents, employees or other persons in the service of trustor company or company which has been a trustor company, who has committed such acts shall be punished with a fine not exceeding thirty thousand (30,000) yen: (1) When failed to submit tho documents under the provision of Article 19 paragraph 1 or 2, or submitted such documents including an untrue statement; (2) When failed to prepare such books and documents under the provision of Article 20 paragraph 1, or made any untrue statement in such books and documents; (3) When violated the provision of Article 20 paragraph 2; (4) When violated any order under the provision of Article 24; (5) When violated the provision of Article 26 paragraph 3.

Article 36. In the following cases, the representative, agents employees or other persons in the service of trustor or trustee company who has committed such acts shall be punished with a fine not exceeding thirty thousand (30,000) yen: (1) When failed to submit the data or report under the provision of Article 21 paragraph 1, or submitted data or report including untrue statement; (2) When refused, prevented or evaded the examinations under the provision of Article 21 paragraph 1.

Article 37. When the representative of a juridical person, or the agents, employees or other persons in the service of a juridical person or a person made a violation of the preceding eight (8) Articles, such juridical person or such person shall be punished with monetary penalty as mentioned in respective Articles in addition to the punishment to the person or persons who committed such acts;provided, however, that this shall not apply to the juridical person or the person when it is certified that in order to prevent such violations of the agents, employees and other persons in the service of the juridical person or the person such juridical person or person has paid due attention or exercised due supervision.

Article 38. Any person coming under any of the following items shall be punished with an administrative fine not exceeding five thousand (5,000) yen: (1) Any person who has violated the provision of Article 11 paragraph 2; (2) Any person who has, in violation of the disposal to the concerned persons or witnesses under the provision of Article 183 item (1) of the Securities and Exchanges Law which applies mutatis mutandis in Article 27, failed to present himself or make statement, or made a false statement, or failed to submit opinion or report, or submitted any false opinion or report; (3) Any person who has, in violation of the disposal to the appraisers to be made under the provision of Article 183 item (2) of the Securities and Exchanges Law which applies mutatis mutandis in Article 27, failed to present himself or to make appraisal, or made any false appraisal; (4) Any person who has, in violation of the disposal to the concerned persons under the provision of Article 183 item (3) of the Securities Exchanges Law which applies mutatis mutandis in Article 27, failed to submit articles; (5) Any person who has refused, prevented or evaded any examination under the provisions of Article 183 item (4) of the Securities and Exchanges Law which are to be applies mutatis mutandis in Article 27.