Regulatory Alerts2014-10-25
CVM Instruction No. 440 of October 18, 2006
The Brazilian Securities and Exchange Commission (CVM) issued Instruction No. 440 to amend Article 16-B of CVM Instruction No. 243. The amendment mandates that open companies must obtain prior approval from their Board of Directors to transfer their registration from an organized over-the-counter market to a stock exchange. Additionally, the company is required to publish a relevant fact notice regarding the approval and ensure that the transfer occurs without interrupting the trading of its securities.
CVM INSTRUCTION NO. 440, OF OCTOBER 18, 2006. Amends CVM Instruction No. 243, of March 1, 1996.
The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Collegiate Body, in a meeting held on this date, and in accordance with the provisions of Articles 1, item II; 8, items I and II; and 18, item II, sub-items “a” and “c”, of Law No. 6,385, of December 7, 1976, resolved to issue the following Instruction:
Art. 1º Article 16-B of CVM Instruction No. 243, of March 1, 1996, shall be effective with the following wording:
“Art. 16-B. The change of registration of an open company from an organized over-the-counter market to a stock exchange must be previously approved by its Board of Directors, in a meeting specifically convened for this purpose.
§ 1º The company must publish a notice of a relevant fact, in accordance with CVM Instruction No. 358, of January 3, 2002, informing the approval of the change of its registration, in accordance with the caput of this article.
§ 2º The change referred to in this article must occur in such a manner that there is no interruption in the trading of the securities issued by the company.” (NR)
Art. 2º This Instruction enters into force on the date of its publication in the Official Gazette of the Union.
Signed original by MARCELO FERNANDEZ TRINDADE President