Draft law takes aim at share manipulation

A new bill intended to drastically tighten controls on insider stock trading and market manipulation was made public by the Economy Ministry yesterday. The draft legislation, which is due to be tabled in Parliament next month, also considerably enhances the powers of the Capital Market Commission. The ministry’s move was in part dictated by Greece’s obligation to incorporate into its national law a EU directive on insider dealing and market manipulation, but also by the bitter experience of the 1999 stock bubble. The bill defines in clear terms the notion of market manipulation, through transactions or transaction orders, spreading false or misleading information and insider trading. If passed, the draft law will remove much of the burden of proof from authorities investigating alleged cases of insider trading.