Jan. 28 (Bloomberg) -- Japan's financial watchdog ordered unlisted Teramento Corp. to correct 20 trillion yen ($187 billion) of securities filings that claim it owns majority stakes in Toyota Motor Corp., Sony Corp. and four other major firms.

The Financial Services Agency ordered Teramento to correct the filings today because they breach the Financial Instruments and Exchange Act, according to a statement on the regulator's Web site.

``There is no evidence they acquired the stakes,'' the agency said. Teramento President Shigeru Yamaguchi said today in a phone interview he executed the orders through Lehman Brothers Holdings Inc. Lehman's Tokyo spokeswoman, Keiko Sugai, said the firm didn't receive any transaction requests from Teramento.

Such an acquisition of Sony by Teramento ``is impossible,'' said Atsuo Omagari, a spokesman for Sony Corp. Toyota also said it had no knowledge of such transactions, as did the other companies named in the filings: Nippon Telegraph & Telephone Corp., Fuji Television Network Inc., Mitsubishi Heavy Industries Ltd. and Astellas Pharma Inc.

The incident highlights the challenge regulators face in balancing speed and accuracy when disclosing market information.

``Speed and convenience in disclosure are important, so this kind of problem can't be eliminated by tightening rules,'' said Yuuki Sakurai, who helps manage the equivalent of $54 billion in assets at Fukoku Mutual Life Insurance Co. ``As investors we'll just have to double- or triple-check the information ourselves.''

Filing System

According to filings to the Ministry of Finance on Jan. 25 and made public by the FSA's electronic disclosure system after the market closed, Kawasaki City-based Teramento acquired stakes of 51 percent or more in the six companies.

In Japan, any individual or institutional investor is allowed to file a report on share purchases through the FSA's electronic network between 9 a.m. and 5:15 p.m. provided they have a password and e-mail identification. Users have to provide regulators with a residence certificate or articles of incorporation to gain this access.

Making false shareholding filings can bring a maximum 5-year prison sentence or fine of 5 million yen, said Takao Yokobori, an official at a Tokyo office of the Ministry of Finance.

The FSA will look at strengthening its filing system, said Michio Suzuki, an official at the watchdog's disclosure division.

``We need to take measures to avoid a recurrence,'' Suzuki said in a telephone interview. ``We've also ordered local finance bureaus to monitor filings more carefully.''

Fujio Mitarai, chairman of the country's largest business lobby Keidanren, said he was surprised by the news.

``It was obviously a total falsehood,'' Mitarai said at a regular press conference in Tokyo today. ``Any system that allows something like this has to be fixed.''

To contact the reporters on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net; Komaki Ito in Tokyo at kito@bloomberg.net.

Last Updated: January 28, 2008 04:07 EST