CVM Instruction No. 328 of February 18, 2000

CVM INSTRUCTION NO. 328, OF FEBRUARY 18, 2000.

Amends CVM Instruction No. 223, of November 10, 1994, which provides for the issuance of non-standardized options ("Warrants").

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 Art. 8, item I, and Art. 18, item II, letter "a", of Law No. 6,385, of December 7, 1976, and of Art. 3 of Decree-Law No. 2,286, of July 23, 1986, HAS RESOLVED to issue the following Instruction:

Art. 1 The Articles 1, 2, 5, 8 and 9 of CVM Instruction No. 223, of November 10, 1994, shall enter into force with the following wording:

"Art. 1 The issuance of non-standardized call and put options ("Warrants") of the following securities is authorized:

I - shares issued by open companies;

II - theoretical portfolios referenced in shares, traded on a stock exchange or organized over-the-counter market, which form and have formed, for a period not less than the term of the options, a market index regularly calculated, widely disseminated and accepted;

III - simple or convertible debentures, issued by open companies and resulting from public distributions registered with the Securities and Exchange Commission - CVM; and

IV - promissory notes registered for public distribution.

§1 Non-standardized call options may be issued in covered or uncovered modalities.

§2 The issuance of non-standardized options on other securities depends on prior approval by the CVM of the characteristics of the operation." (NR)

"Art. 2 The issuance of non-standardized options must maintain, throughout the entire period of their validity, at the securities custody service provider institution accredited by the CVM, guarantees constituted by pledge or lien, in favor of the option holders, of free and clear assets, accepted by the depositary institution.

§1 In the case of covered operations, the guarantee, constituted by the total of the securities subject to the call options, is not subject to acceptance by the option holders.

§2 In the case of uncovered operations, the depositary institution of the guarantees must maintain an adequate system for calculating guarantees and margins, with the objective of ensuring the correct settlement of the options contract." (NR)

"Art. 5 ......

IV - copy of the pledge or lien contract of the assets for the guarantee of the operation, signed with the depositary institution;

......

XI - information on the premises used for the calculation of the premium, highlighting volatility and interest rate, as well as the main risks of the underlying asset." (NR)

"Art. 8 ......

IX - information on the criteria for calculating and charging additional guarantees." (NR)

"Art. 9 The dissemination of the preliminary prospectus, as well as the promotion of the offer, may only begin after the registration request with the CVM, except for the use of any advertisement or advertising material for the offer, which depend on examination and prior approval by the CVM, and may only be disseminated after the grant of registration.

§1 The advertising material is considered approved if there is no contrary manifestation by the CVM, within a period of two business days, counted from the date of delivery."

......(NR)

Art. 2 The provisions contained in CVM Instruction No. 290, of September 11, 1998, shall apply to the operations referred to in CVM Instruction No. 223/94, when applicable.

Art. 3 This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Original signed by

JOSÉ LUIZ OSORIO DE ALMEIDA FILHO

President