Law 4141/2013 was recently voted by the Greek Parliament. Its provisions target, among others, to establish new investment instruments and modify parts of the existing capital markets legislation. Its main changes are the following:
The most important innovation of the Law is the enhancement of the ‘venture capital companies/funds’ regime. The role of venture capital is of crucial importance for start-up companies. Venture capital companies invest on early stage companies that need finance buying their equity and supporting them until they can generate income. When they become successful, they make profits by selling their ‘participation’ in the company, while their shareholders enjoy important tax privileges. The Law now allows the trading of venture capital funds in a regulated market and renders it obligatory for venture capital companies 24 months after their establishment.
In a second place, the Law brings changes in investment firms’ regime. Most of them target to specify some of MiFID’s provisions. Securities can be traded cross-border, namely in other Member States’ regulated markets (RM) or Multilateral Trading Facilities (MTF). Moreover, investment firms can lawfully provide credit to their clients so as to purchase securities in a RM or MTF.
Moreover, the business of real estate investment companies is promoted. The scope of their targeted investments is expanded. Until now they could invest only in business buildings. Now they invest, among others, in house or touristic buildings. This is considered as a key provision for the participation of these companies in the privatization process of public property.
Last but not least, the Law brings partial changes in capital markets legislation. For instance, the Mandatory Bid Rule (MBR) of Greek Takeover law changes as the time limit within which the fair price was calculated is now 12 (rather than 6) months.
Edited by Ioli Stamatelou