CVM INSTRUCTION NO. 135, OF NOVEMBER 16, 1990

Provides for the hypotheses of application of the SUMMARY PROCEDURE in the administrative process.

The BOARD OF DIRECTORS OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that, in a meeting held on this date, and based on the provisions of Article 9, § 2 of Law No. 6,385, of December 7, 1976, and Item II of the Resolution of the National Monetary Council No. 1657, of October 26, 1989,

HAS RESOLVED:

Art. 1 The following constitute objective nature infractions, in which a summary administrative proceeding procedure may be adopted, in accordance with the Regulation attached to CMN Resolution No. 1657/89:

OPEN COMPANY ADMINISTRATORS

I - Administrators of open companies who fail to:

a) Arrange for the suspension of share trading from the convocation of the General Assembly that deliberates on the cancellation of the open company registration, until the effective publication of the public offer notice for share acquisition (Item III of Instruction 03/79);

b) Adopt the procedures listed in Items I to III of Article 13 of Instruction 60/87, except for the hypotheses provided in Items IV and IX of Article 17 of the same Instruction, as well as to adopt the procedures provided for in Articles 8 and 9 of Instruction 118/90;

c) Publish the notices and annual financial statements within the deadlines provided for in Article 133 of Law No. 6,404, of 12/15/76;

d) Include controlled companies in consolidated financial statements without the proper authorization of the CVM (Article 7 of Instruction 15/80);

e) Present the explanatory notes that must accompany the consolidated financial statements, as provided for in Article 21 of Instruction 15/80;

f) Consider in the supplementary statements the effects of income tax as per Article 5 of Instruction 64/87;

g) Provide the certificates of entries recorded in the books referred to in Items I to IV of Article 100 of Law No. 6,404/76;

INCENTIVIZED COMPANIES ADMINISTRATORS

II - Administrators of companies benefiting from resources originating from tax incentives who fail to:

a) Request registration with the CVM, in accordance with Article 26 and the sole paragraph of Instruction 92/88, with the alterations contained in Article 1 of Instructions 98/89 and 103/89;

b) Adopt the procedures provided for in Items I and II of Article 7 of Instruction 92/88, except for the hypotheses provided in Items V and X of Article 13 of the same Instruction;

CONTROLLING SHAREHOLDER

III - The controlling shareholder who fails to comply with the request of shareholders representing at least one-tenth of the shares with voting rights, regarding the installation of a Fiscal Council, as provided for in paragraphs 2 and 3 of Article 161 of Law No. 6,404/76, and the adoption of the multiple voting process, as provided for in Article 141, paragraph 1 of Law No. 6,404/76;

PUBLIC DISTRIBUTION

IV - The offerer or the institutions responsible for the primary or secondary distribution of securities who use any advertising text before the granting of registration or without prior approval by the CVM (Article 23 of Instruction 13/80 and Article 15 of Instruction 88/88);

TREASURY SHARES

V - The open company acquiring shares of its own issuance without the corporate statute attributing powers to the Board of Directors to authorize such procedure (Article 1, Instruction 10/80);

VI - The open company keeping treasury shares of its own issuance in quantities exceeding 5% of each class of shares in circulation in the market, included in this percentage are the shares existing, kept in treasury by controlled and affiliated companies (Article 3, Instruction 10/80);

VII - The open company acquiring shares of its own issuance to remain in treasury or for cancellation, or alienating them, in private transactions (Article 9, Instruction 10/80);

VIII - The open company failing to alienate treasury shares that exceed the balance of available profits and reserves, within 3 months from the approval of the balance sheet in which the excess is determined (Article 14, Instruction 10/80);

RELEVANT SHAREHOLDING PARTICIPATION

IX - Any natural or legal person, or group of persons acting in concert or representing the same interest, who fails to comply with the provisions of Articles 1 and 2 of Instruction No. 69/87, regarding the disclosure of relevant shareholding participation;

TRUSTEE AGENT

X - The trustee agent for debenture holders who fails to fulfill the duties imposed by Items II, XVI, and XXIV of Article 12 of Instruction 28/83;

INDEPENDENT AUDITOR

XI - The independent auditor who infringes:

a) The provisions of Item I, in the "a" and "c" sub-items of Item IV, in the "a", "b", "c", "d", and "f" sub-items of Item V, and in Items XXII and XXIII of the Standards attached to Instruction No. 04/78, regarding the conditions for the exercise of activities;

b) The provisions of Item XXI of the Standards attached to Instruction 04/78, regarding the person responsible for signing audit reports and other documents;

c) The provisions of Articles 2 and 3 of Instruction No. 38/84, regarding conflicts of interest;

d) The provisions of Items VII, VIII, and IX of Article 4 of Instruction 38/84, regarding duties and responsibilities;

PORTFOLIO ADMINISTRATION

XII - The securities portfolio administrator who fails to:

a) Contract in writing with the client the basic characteristics of the service, as provided for in Item III of Article 10 of Instruction 82/88;

b) Observe the provisions of Article 11, I and II of Instruction 82/88, regarding acting as counterparty in operations with portfolios it administers;

c) Observe the provisions of Article 11, III of Instruction 82/88, regarding the characteristics of the services it provides;

d) Observe the provisions of Article 11, VI of Instruction 82/88, regarding the use of resources it administers;

FUNDS AND INVESTMENT COMPANIES

XIII - Administrators of Mutual Stock Funds, Conversion Funds, Companies, Funds, and Foreign Capital Investment Portfolios who fail to:

a) Observe the portfolio composition and diversification limits (Articles 17 and 18 of CMN Resolution 1280/87 and Article 1 of Instruction 71/87; Articles 40 to 46 of Instruction 91/88; Articles 43 to 45 of Annex I Regulation; Articles 40 to 42 of Annex II Regulation, and Articles 25 to 27 of Annex III Regulation, all of CMN Resolution No. 1289/87);

b) Observe the prohibitions imposed in Articles 13 and 14 of the Regulation attached to CMN Resolution No. 1280/87, in Articles 49 to 51 of Instruction 91/88, in Articles 48 and 49 of Annex I Regulation, Articles 44 to 46 of Annex II Regulation, and Articles 29 and 30 of Annex III Regulation, all of CMN Resolution No. 1289/87;

c) Observe the provisions of the sole paragraph of Article 16 of the Regulation attached to CMN Resolution No. 1280/87, in Articles 53 and 54 of Instruction 91/88, in Articles 50 and 51 of Annex I Regulation, in Articles 49 and 50 of Annex II Regulation, both of CMN Resolution 1289/87, regarding expenses and charges imputable to Funds or Companies;

d) Observe the provisions of Article 1 of Instruction 114/90, in Articles 33 to 36 of Instruction 91/88, in Articles 25 to 33 of CMN Resolution No. 1280/87, in Articles 30 to 32 of Annex I Regulation, Articles 32 and 33 of Annex II Regulation, both of CMN Resolution 1289/87, regarding the redemption of quotas and liquidation of investment;

e) Observe the regulatory provisions regarding financial statements provided for in Article 41 of the Regulation attached to Resolution 1280/87, in Article 37 of Annex I Regulation, in Article 36 of Annex II Regulation, and in Article 22 of Annex III Regulation, all of Resolution No. 1289/87;

PAIT FUND

XIV - The institution administering Savings and Investment Plans - PAIT who fails to:

a) Observe the operational limits established in Article 4 of Instruction 61/87, as well as in Article 1 of Instruction 87/88;

b) Comply with the deadline established for the redemption of assets, established in Article 5 of Instruction 87/88;

COMPANIES INTEGRATING THE DISTRIBUTION SYSTEM

XV - Members of the distribution system who infringe the provisions of Articles 1 and 3 of CVM Instruction No. 33/84, regarding customer registration forms;

XVI - Members of the distribution system who fail to observe the provisions of Articles 2 and 3 of CVM Instruction No. 42/85;

XVII - Broker societies or distribution societies who practice the acts prohibited in Article 12, II and V of the Regulation attached to Resolution 1655/89 and in Article 12, II and V of the Regulation attached to Resolution No. 1120/86, with the wording given by Resolution 1653/89;

XVIII - Stock and futures exchanges who fail to observe, respectively, the provisions of Articles 5, 10, § 2, 11, § 4, and 71 of the Regulation attached to CMN Resolution No. 1656/89 and sub-item "c" of Item VI of CMN Resolution No. 1645/89;

BROKER AND DISTRIBUTOR PROPRIETARY PORTFOLIO

XIX - Broker or distribution societies who fail to:

a) Observe the rules established in Article 4 of Instructions 116 and 117/90, regarding operational limits for proprietary portfolios;

b) Observe the provisions regarding financial statements established in Article 6 of Instructions 116 and 117/90;

c) Observe the provisions of Article 7 of Instructions 116 and 117/90, regarding acting as counterparty in portfolio operations administered by them;

AUTONOMOUS INVESTMENT AGENT

XX - The autonomous investment agent who practices the acts prohibited to them in Item XIII of Resolution No. 238/72;

XXI - Societies accrediting autonomous investment agents who practice the acts prohibited to them by Item XV of Resolution 238/72.

Art. 2 The summary procedure will not be adopted in cases of generic recidivism.

Art. 3 This Instruction enters into force on the date of its publication in the Official Gazette of the Union, with the contrary provisions revoked.

Signed Original by

ARY OSWALDO MATTOS FILHO
President