CVM Instruction No. 303 of May 5, 1999 (Revoked)

FULL TEXT OF CVM INSTRUCTION NO. 303, OF MAY 5, 1999, WITH THE CHANGES INTRODUCED BY CVM INSTRUCTIONS NOS. 326/00 AND 340/00.
CVM INSTRUCTION NO. 303, OF MAY 5, 1999.
Provides for the composition and diversification of investment funds in securities.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on this date, in view of the provisions of CMN Resolution No. 1787, of February 1, 1991, and of Art. 19 of Law No. 6,385, of December 7, 1976, HAS DECIDED to issue the following Instruction:

Art. 1 This Instruction provides for the composition and diversification of the portfolio of the investment fund in securities governed by the general rules issued by the Securities and Exchange Commission.

Art. 2 The fund may keep its assets invested in:
I - shares issued by companies registered with the CVM; II - securities whose distribution has been registered with the CVM; III – certificates or deposit receipts of securities, regulated by the National Monetary Council – CMN or by the CVM; IV - public bonds issued by the National Treasury or by the Central Bank of Brazil; V - fixed-income bonds issued by financial institutions, VI - shares of financial investment funds (FIF), shares of funds applying in shares of FIF, and shares of investment funds abroad; VII - derivative operations, involving contracts referenced in securities, carried out in an auction or in an electronic system that meets the same conditions as the competitive systems administered by a stock exchange or a futures exchange; VII – positions in derivative markets, involving contracts referenced in shares, share indices, or interest rates, carried out in organized markets in auction or in an electronic system that meets the same conditions as the competitive systems administered by stock exchanges, futures exchanges, or organized over-the-counter markets; (NR)

• Item VII with wording given by CVM Instruction No. 326, of December 11, 2000.
  VIII - stock lending operations, as regulated by the CVM; and IX - committed operations, in accordance with CMN regulation, limited to five percent of the fund's net assets.
  X - shares issued by companies signatories of the Treaty of Asunción (MERCOSUR) or deposit certificates of these shares admitted to public trading in the Brazilian securities market; and (NR)
• Item X added by CVM Instruction No. 326, of December 11, 2000.
  XI - Depositary Receipts, tradable in the international market, backed by securities issued by open companies registered with the CVM. (NR)
• Item XI added by CVM Instruction No. 326, of December 11, 2000.
  Sole Paragraph. Only funds intended for qualified investors may acquire shares of mutual investment funds in emerging companies or maintain positions in derivative markets, involving contracts referenced in commodities or exchange rates. (NR)
• Sole Paragraph added by CVM Instruction No. 326, of December 11, 2000.

§1 Only funds intended for qualified investors may acquire shares of mutual investment funds in emerging companies or maintain positions in derivative markets, involving contracts referenced in commodities or exchange rates.

• Sole Paragraph renumbered to § 1 by CVM Instruction No. 340, of June 29, 2000.

§2 Funds intended exclusively for qualified investors may invest up to twenty percent of their assets in shares of funds constituted in the form of closed-end condominiums with a duration equal to or greater than five years and whose shares are traded on an exchange or organized over-the-counter market."(NR)

• §2 added by CVM Instruction No. 340, of June 29, 2000.

Art. 3 The fund's prospectus and regulations must clearly indicate the investment policy and asset allocation ranges, and the prevailing asset in the composition of its portfolio must appear in its name. Sole Paragraph. The fund may be constituted for investment in a single asset, among those defined in items I, II, III, and VII.

Art. 3 The fund's prospectus and regulations must clearly indicate the investment policy and asset allocation ranges, and the prevailing asset in the composition of its portfolio must appear in the fund's name. (NR)

• Article with wording given by CVM Instruction No. 326, of December 11, 2000.

Art. 4 Applications or fixed-income operations, pre- or post-fixed, or synthesized via any other instruments, whose yields can be estimated at the time of their realization, as well as applications in shares of investment funds provided for in item VI of Art. 1 of this Instruction, are limited to forty-nine percent of the fund's net assets.

Art. 5 Violations of the norms of this Instruction are subject to the summary procedure of the administrative process, in accordance with CMN regulation.

Art. 6 This Instruction enters into force ninety days after its publication in the Official Gazette of the Union.

Signed original by
FRANCISCO DA COSTA E SILVA
President