(Reuters) - Japan's securities market watchdog is investigating whether Deutsche Bank AG (DBKGn.DE) employees provided excessive entertainment to Japanese pension fund executives in breach of regulations, sources with knowledge of the matter said.

The Securities and Exchange Surveillance Commission (SESC) found evidence of potential infractions during a regular audit of Deutsche Securities Inc, the German bank's investment banking arm in Tokyo, said the sources, who spoke on condition they not be identified because the investigation is ongoing.