Regulatory Alerts2024-02-13 | CD-SIBOIF-1429-3-FEB13-2024Norm on the Update of the Share Capital of Stock Exchanges
The Board of Directors of the Superintendence of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1429-3-FEB13-2024 to update the minimum share capital requirement for stock exchanges to C$20,387,500.00. Existing stock exchanges must pay the difference within seven calendar days after their next Ordinary General Shareholders' Meeting, while new entities must meet the updated capital at the time of their constitution. This resolution repeals the previous update norm from February 2022 and enters into force upon publication in the Official Gazette.
Page 1 of 2 Resolution No. CD-SIBOIF-1429-3-FEB13-2024 Dated February 13, 2024
NORM ON THE UPDATE OF THE SHARE CAPITAL OF STOCK EXCHANGES
The Board of Directors of the Superintendence of Banks and Other Financial Institutions,
CONSIDERING
I
That Article 37, subsection "b", of Law No. 587, "Securities Market Law", contained in Law No. 974, "Law of the Nicaraguan Legal Digest on Banking and Finance Matters", published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and its updates (Legal Digest), establishes that the minimum share capital of Stock Exchanges shall not be less than ten million córdobas (C$10,000,000.00).
II
That the same Article 37, in its subsection "b", empowers the Board of Directors of the Superintendence of Banks and Other Financial Institutions to review and adjust the minimum share capital for Stock Exchanges in accordance with the variation in the official exchange rate of the national currency.
III
That through the Norm on the Update of the Share Capital of Stock Exchanges, contained in Resolution No. CD-SIBOIF-1296-3-FEB15-2022, dated February 15, 2022, published in La Gaceta, Official Gazette No. 38, on February 25, 2022, the minimum share capital required for Stock Exchanges was last updated to nineteen million eight hundred twenty-two thousand five hundred córdobas (C$19,822,500.00).
IV
That in accordance with the considerations stated above and based on Article 6, subsection "b" of Law No. 587, "Securities Market Law"; and Article 3, items "3" and "13" of Law No. 316, "Law of the Superintendence of Banks and Other Financial Institutions", contained in the Legal Digest.
In exercise of its powers,
HAS ISSUED
The following:
Resolution No. CD-SIBOIF-1429-3-FEB13-2024
NORM ON THE UPDATE OF THE SHARE CAPITAL OF STOCK EXCHANGES
Article 1. Update of Share Capital.- The minimum share capital required for Stock Exchanges is updated to twenty million three hundred eighty-seven thousand five hundred córdobas (C$20,387,500.00).
Article 2. Deadline.- Currently operating Stock Exchanges that, upon the entry into force of this norm, have a minimum share capital, subscribed and paid, below that established in the preceding article, must have it paid no later than seven (7) calendar days after the next Ordinary General Shareholders' Meeting.
Stock Exchanges that are authorized to be constituted and operate in the country after the entry into force of this norm must comply with the updated share capital at the time of their constitution.
Article 3. Repeal.- The Norm on the Update of the Share Capital of Stock Exchanges, approved by the Board of Directors of the Superintendence through Resolution No. CD-SIBOIF-1296-3-FEB15-2022, dated February 15, 2022, published in La Gaceta, Official Gazette No. 38, on February 25, 2022, is hereby repealed.
Article 4. Effectiveness.- This Norm shall enter into force upon its publication in La Gaceta, Official Gazette.
(F) Legible Magaly María Sáenz Ulloa (F) Illegible (Luis Ángel Montenegro E) (F) Illegible Fausto Reyes (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Ervin Antonio Vargas Pérez) (f) Illegible Secretary.
SAÚL CASTELLÓN TÓRREZ Ad Hoc Secretary of the Board of Directors SIBOIF