CVM Instruction No. 241 of January 12, 1996 (Repealed)

CVM INSTRUCTION NO. 241, OF JANUARY 12, 1996.

Provides for the constitution, operation, and administration of Mutual Investment Funds in Stocks - Free Portfolio intended for participation in the privatization auction of a specific open company included in the National Privatization Program - PND.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a session held on this date, and in view of the provisions of Resolution No. 1,787, of February 1, 1991, of the National Monetary Council,

HAS RESOLVED:

Art. 1. This Instruction deals with Mutual Investment Funds in Stocks - Free Portfolio, constituted with the objective of participating in the privatization auction of an open company, included in the National Privatization Program - PND.

Art. 2. The provisions of CVM Instruction No. 215, of 08-06-94, and the provisions of this Instruction apply to the Funds constituted in accordance with the preceding article.

Art. 3. The Bylaws must specify the privatizable company that is the object of the Fund.

Sole Paragraph. The name of the Fund must also include the identification of the company that is the object of the intended auction.

Art. 4. The Funds intended for privatization, as regulated in this Instruction, must maintain, for at least 180 (one hundred and eighty) days after the holding of the auction, a minimum percentage of 75% (seventy-five percent) of their investments in shares or securities issued by the company that is the object of the Fund.

Sole Paragraph. After the period provided for in this article, the Fund will be obliged to comply simply with the provisions of article 49 of CVM Instruction No. 215/94, and its name must be compatible with its investment policy, in accordance with paragraph 1 of article 1 of said Instruction.

Art. 5. The Fund must adapt to the minimum limit of shares of the privatized company, provided for in the preceding article, on the date of settlement of the privatization auction.

Sole Paragraph. In the period prior to the holding of the auction, the Fund is exempt from observing the portfolio composition limits set forth in article 49 of CVM Instruction No. 215/94.

CVM INSTRUCTION NO. 241, OF JANUARY 12, 1996.
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Art. 6. If the Fund does not acquire the minimum number of shares established in article 4, if the company is removed from the PND, or if the privatization auction is not held within 180 (one hundred and eighty) days of the constitution of the Fund, and in the absence of specific provision in the Bylaws, the Administrator must hold a General Meeting of unit holders, within a maximum period of 15 (fifteen) days, counted from the event that originated it, to deliberate on one of the following alternatives:

I - liquidation of the Fund;

II - change of investment policy, with alteration of the Fund's name;

III - distribution to unit holders of the excess resources, for the purpose of compliance with article 4.

§1. The deliberations regarding the matters of this article must also observe the quorum fixed in paragraph 1 of article 14 of CVM Instruction No. 215/94.

§2. If the General Meeting deliberates on the alternative provided for in item II of this article or by regulatory provision, the Fund will have a period of 30 (thirty) days, counted from the holding of the General Meeting or the privatization auction, in the case of regulatory provision, to adapt to the composition limits provided for in article 49 of CVM Instruction No. 215/94.

Art. 7. The Fund must disclose, widely and immediately, in accordance with article 35 of CVM Instruction No. 215/94, the quantity, value, and percentage of the total portfolio value of the shares acquired in the privatization auction.

Sole Paragraph. The Fund must also disclose, widely and immediately to unit holders, the alternative chosen in accordance with article 6 of this Instruction.

Art. 8. In the case of open funds, redemption requested prior to the period for adaptation to portfolio composition requirements, in accordance with article 5, shall be made at the value of the investment, without any correction and yield, or at the value calculated in accordance with article 56 of CVM Instruction No. 215/94, whichever is lower, and such restriction must be prominently stated in the Fund's Bylaws and in the document referred to in paragraph 1 of article 52 of said Instruction.

Art. 9. The Fund's Bylaws may contain provisions defining conditions for the transformation of the Fund, from open to closed condominium, or vice versa, without the need for a meeting resolution.

Sole Paragraph. In the event that the Bylaws contain a provision for the transformation of an open condominium into a closed one, such transformation must be stated in the document referred to in paragraph 1 of article 52 of CVM Instruction No. 215/94.

Art. 10. Each Institution or Conglomerate may constitute only one Fund with the objective of participating in the privatization of a specific company.

CVM INSTRUCTION NO. 241, OF JANUARY 12, 1996.
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Art. 11. This Instruction shall enter into force on the date of its publication in the Official Gazette of the Union.

Signed original by

FRANCISCO AUGUSTO DA COSTA E SILVA
President