Clue: In both hands, you may grasp smooth character from Athens (8)
Answer: LYSANDER
Explanation: Definition: character from Athens 
*In* **L**(eft) *and* **R**(ight) ("both hands"), **YE** ("you") *grasping* **SAND** ("smooth"), so **L(Y(SAND)E)R** 
*As far as my limited Greek history goes, I think this clue is wrong, as Lysander was not from Athens, but Sparta. (see comments below for alternative views on who the setter was referring to)