UPDATE 1-Japan FSA may ask institutions to reveal votes - Nikkei

May 9 (Reuters) - Japan's Financial Services Agency (FSA) is considering asking institutional investors to disclose how they exercised voting rights, in a move aimed at encouraging companies to pursue business plans reflecting shareholder interests, the Nikkei business daily reported.

The FSA is targeting trust banks, mutual fund firms, investment advisers and life insurers for the disclosures, the business daily said without citing any sources.

The FSA aims for stronger voluntary guidelines, including a requirement to publish votes, Nikkei said, adding that the regulator will seek to boost its own oversight capabilities at the same time.

Proposals will be incorporated into a report to be compiled by the Financial System Council, an advisory body to the prime minister, as early as June, and legal changes may be considered, the business daily reported. (Reporting by Amiteshwar Singh in Bangalore; Editing by Jarshad Kakkrakandy)