The Securities and Exchange Surveillance Commission plans to recommend imposing a fine of some ¥7 billion on Toshiba Corp. for falsifying its financial reports, sources familiar with the matter said Wednesday.

The recommendation by the nation’s securities watchdog is expected to be made to the Financial Services Agency by the end of November, based on the financial instruments and exchange law, the sources added.

Since improper accounting practices at its major divisions came to light earlier this year, Toshiba has made a spate of downward revisions to its past financial statements, totaling ¥224.8 billion on a pretax basis from April 2008 to December 2014.

The commission has judged that Toshiba falsified its financial statements and earnings summaries from fiscal 2010 to 2014, the sources said.

Toshiba issued bonds valued at over ¥300 billion for that five-year period, which apparently led to the massive fine, according to the sources.

The fine will top the previous record of ¥1.6 billion slapped on IHI Corp. in July 2008 for issuing falsified financial statements.

Toshiba has set aside ¥8.4 billion for fiscal 2014 that ended this March to pay for potential penalties based on its own calculations.

The systematic inflation of profits spanning nearly seven years has hurt public confidence in Toshiba — the manufacturer of products ranging from chips and personal computers to nuclear power plants — and raised the need for restructuring of its unprofitable businesses.

Following the scandal, Toshiba revamped its management and increased the number of outside directors to improve governance. The company is seeking ¥300 million in damages from five former executives for their negligence.

On Tuesday, Toshiba disclosed details about past write-downs totaling around ¥115.6 billion by its U.S. nuclear unit Westinghouse Electric Co. for fiscal 2012 and 2013.

It came after the Tokyo Stock Exchange took issue with Toshiba’s failure to disclose the write-downs worth ¥76.2 billion for fiscal 2012 due to the huge size of the loss.

KEYWORDS scandals, Toshiba, FSA