CVM Instruction No. 314 of September 24, 1999

CVM INSTRUCTION NO. 314, OF SEPTEMBER 24, 1999.

Provides for the possibility of private negotiations with securities by Investment Funds in Securities, intended exclusively for qualified investors during the validity of the Provisional Contribution on Movement or Transmission of Values and of Credits and Rights of a Financial Nature - CPMF.

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 Article 19 of Law No. 6,385, of December 7, 1976, and Resolution CMN No. 1,787, of February 1, 1991, RESOLVED to issue the following Instruction:

Art. 1
Funds intended exclusively for qualified investors under the terms of Article 99 of CVM Instruction No. 302, of May 5, 1999, as well as their unitholders, may, during the validity of the Provisional Contribution on Movement or Transmission of Values and of Credits and Rights of a Financial Nature - CPMF, carry out private transactions with securities, provided they are associated with applications and/or redemptions of shares of mutual investment funds in securities.

Art. 2
The operations referred to in the previous article shall be carried out obligatorily under the following conditions:

I - the subscription of shares shall be made by check or bank order document (D.O.C.) and shall be simultaneous with the sale, by the unitholder to the fund, of shares and/or subscription warrants for shares, issued by open companies, in an amount corresponding to the subscribed amount, in the form and proportion established in the respective regulations and other applicable provisions;

II - the redemption of shares shall be effected by check or bank order document (D.O.C.) simultaneously with the purchase, by the unitholder, of shares and/or subscription warrants for shares, issued by open companies, included in the fund's portfolio, in an amount corresponding to the redeemed amount, in the form and proportion established in the respective regulations and other applicable provisions;

III – the sale of the fund's shares and/or subscription warrants for shares to the unitholder shall be proportional to the assets held in the fund's portfolio, and the choice, by the unitholder, of the assets to be alienated by the fund is prohibited, except when exceptionally authorized by the CVM through prior consultation.

Art. 3
All provisions of this regulation apply to Mutual Investment Funds in Shares – Free Portfolio, while they are not adapted to CVM Instruction No. 302, of May 5, 1999.

CVM INSTRUCTION NO. 314, OF SEPTEMBER 24, 1999.
2

Art. 4 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