DUTCH PROPOSE STRICT INSIDER TRADING LAW
The ministries of Finance and Justice
said they have presented parliament with a new law to make
insider trading in shares a criminal offence.
    A year ago, the Amsterdam Bourse announced its own rules,
effective from January 1, 1987, aimed at preventing unfair use
of inside information in the trading shares listed on the
exchange, but said back-up legislation was essential.
    The proposed law calls for up to two years imprisonment,
fines of up to 100,000 guilders for an individual and one
million guilders for a company, and repayment to the state of
profits made from insider dealing.
    The proposed fines are higher than any currently in force
in Dutch law, a joint statement from the two ministries said.
    The draft law sets no limit to the illegal profits to be
repaid. The amount would be determined by a court.
    A Finance Ministry spokesman said the time-frame for the
introduction of the new legislation depended entirely on its
reception in Parliament.
    In the meantime the Bourse's Share Trading Association
monitors business closely, frequently suspending or even
rescinding dealings in a stock when price movements suggest
that foreknowledge of a pending announcement is being
exploited.
 REUTER
