Regulatory Alerts2014-10-25
CVM Instruction No. 530 of November 22, 2012
The Brazilian Securities and Exchange Commission (CVM) issued Instruction No. 530 to prohibit investors who sold short a stock on the pricing date or the five preceding trading days from acquiring shares during public distribution offerings. The regulation defines short sales as transactions by investors lacking ownership or holding shares via loan, and treats operations by entities under the same investment influence as those of a single investor, with specific exemptions for market makers and covered positions. Non-compliance with these acquisition bans constitutes a serious offense under the Securities Law, and the instruction entered into force upon its publication.
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