ARTICLE · 15 OCTOBER 1998
A First Italian Case on Insider Trading
ItalyAntitrust/Competition Law
The Court of Milan afforded on November 16 1994 a case of first impression on the rigging of the stock market by spreading of unsound rumours, covered by sect. 5 of the Insider Trading Act of May 17 1991, n. 157.
Sect. 5 prosecutes, with the imprisonment up to six months and a fine from ITL1,000,000 up to ITL30,000,000, whoever spreads unsound, exaggerated or tendentious informations or simulates operations, which may significantly influence the stock market.
In the case a transactor gave by fax, to third parties and to the Italian National Commission for the Stock Exchange (CONSOB), false informations on the acquisition of the majority stock of a listed company.
The Court held that a person to be guilty of this crime must be actually aware that the informations are false and that they can affect the Market.
We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.
