TOKYO (Reuters) - Toshiba Corp's (T:6502) second postponement of its annual results due to newfound accounting errors should be met with a tough response from regulators, Japanese lawmakers urged on Wednesday.
The Tokyo Stock Exchange would consider putting Toshiba's shares on a watchlist for possible delisting if there were further delays, Masahiko Shibayama, head of the Liberal Democratic Party's treasury and finance division, quoted a bourse official as saying in a meeting of lawmakers and regulators.
The laptops-to-nuclear power conglomerate put off plans to announce annual results on Monday, receiving a government extension to submit them by Sept. 7. The results had already been delayed once due to an independent probe, which found company had overstated past results by $1.2 billion over several years.
Sources familiar with the matter have previously said that regulators are studying the case to weigh possible fines.
"The scandal is a severe problem that could lead to a loss of credibility from foreign investors", Shibayama told reporters.
The accounting scandal is Japan's biggest since 2011 when Olympus Corp (T:7733) was found to be involved in a $1.7 billion scheme to conceal two decades of investment losses.
Toshiba Chief Executive Masashi Muromachi told a news conference this week the new errors would not be huge, but declined to say how much they would be worth.
