Apostolos Georgiades & Associates - Greek Depositary Receipts

GREEK DEPOSITORY RECEIPTS

another category of securities tradable on Greek Stock Exchange Market

Among the securities listed on the Athens Stock Exchange Market (hereinafter “ASE”) there also exist a quite recently introduced kind of securities, the “Greek Depository Receipts” (hereinafter “ELPIS”), representing shares of a foreign company. The functional aim of the legislative introduction of the ELPIS is the ability offered to a foreign company to have its shares indirectly traded on the Greek market, without having them per se being listed on ASE. Said possibility appears quite appealing especially to firms domiciled in countries outside the European Union, as they are offered an access to the european capital markets.

ELPIS may be admitted for listing either in the Main Market or in the Greek Market of Emerging Capital Markets (hereinafter “EAGAK”) of ASE; the latter one constitutes another organized market of the ASE operating in parallel with the Main market (referred to as well as “Parallel Market of EAGAK”) and its operation is further strongly supported by the Thessaloniki Stock Exchange Center.

The operation of EAGAK, as explicitly provided for in law, is governed by the same provisions applicable to the Parallel Market of ASE, not withstanding any more specific provisions. It is further expressly provided in law that on the newly operating market of EAGAK the following three categories of securities shall be traded: i) Greek Depository Receipts; ii) Units of Mutual Funds investing in Emerging Capital Markets (referred to as “EKAA units”; resembling the function of mutual funds); iii) Shares of Portfolio Management Firms investing in Emerging Markets (referred to as “EXAA shares”). It should be noted at this point that for the time being only the category of ELPIS is anticipated to be negotiated on EAGAK.[...]

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