The Greek government has published a draft law designed to counter insider trading. It brings Greece into line with European Union laws on the subject.
Economy and Finance Minister Giorgos Alogoskoufis said the draft law would help to create a more modern capital market. It would oblige brokerage firms to inform the exchange’s Capital Market Commission if they suspect clients are using privileged information or manipulating the market.
“The draft law effectively expands the definition of insider trading to include `privileged’ and not just `confidential’ information,” says a spokeswoman for EFG Eurobank in Athens. “This new law will authorize the Capital Market Commission to impose sanctions and penalties against those considered to be manipulating the market based on inside information.”
The penalties would start from Euros 10,000 and could reach up to Euros 2,000,000. Lists of people with access to privileged information would have to be compiled and sent to stock market authorities under the proposed law. Those found guilty of profiting to the tune of over Euros 300,000 from insider trading or share manipulation could face criminal charges.