News

On 16 October, Aleksandr Chernishev, Senior Associate in Corporate Practice of Vegas Lex, went on air at Russia Today TV commenting on the law passed by the State Duma “On Introducing Criminal Liability for Bad Faith Practices in the Stock Market”.

On 15 October, after its third and final reading, the State Duma passed the Law “On Introducing Criminal Liability for Bad Faith Practices in the Stock Market”. Respective amendments are to be made to the RF Criminal Code and the RF Criminal Procedure Code. From now on, those breaking the rules of the stock exchange game might face a fine of RUR 300 thousand to RUR 1 million or imprisonment for up to 7 years. The law is aimed at protecting investor rights and preventing corporate raids. Yet, market players fear that the new rules will make it possible to impose liability on experts causing issuer discontent by their forecasts and recommendations.

For Aleksandr Chernishev’s comments, please, follow the link to:

http://www.russiatoday.com/Business/2009-10-15/new-market-manipulation-laws.html