CVM Instruction No. 277 of May 8, 1998

CVM INSTRUCTION NO. 277, OF MAY 8, 1998.

Amends Article 7 and the sole paragraph of CVM Instruction No. 249, of April 11, 1996.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Board, in a meeting held on this date, in view of the provisions of Articles 4, items II and III, and 8 of Law No. 6,385, of December 7, 1976, HAS DECIDED to issue the following Instruction:

Article 1. Article 7 of CVM Instruction No. 249/96 shall be in effect with the following wording:

“Article 7. The following are authorized to carry out the lending operations provided for in this Instruction:
a) portfolios maintained in the Country by Investment Companies - Foreign Capital, Investment Funds - Foreign Capital, and by foreign Institutional Investors, constituted and administered in accordance with the provisions of Regulations Annexes I, II, III, and IV to Resolution No. 1,289, of March 20, 1987; b) Mutual Stock Investment Funds and Mutual Stock Investment Funds - Free Portfolio, governed by CVM Instruction No. 215, of June 8, 1994; and c) Investment Clubs, regulated by CVM Instruction No. 40, of November 7, 1984.

Sole Paragraph. Mutual Stock Investment Funds and Investment Clubs may only borrow shares in loans to cover any settlement failures in stock market transactions.”

Article 2. This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed original by
FRANCISCO DA COSTA E SILVA
President