CVM Instruction No. 360 of January 29, 2002

CVM INSTRUCTION NO. 360, OF JANUARY 29, 2002.

Amends CVM Instruction No. 279, of May 14, 1998, which provides for the constitution, administration, and operation of Mutual Funds for Privatization – FGTS.

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 item I, of Art. 8 of Law No. 6,385, of December 7, 1976, Law No. 9,491, of September 9, 1997, Law No. 9,635, of May 15, 1998, Decree No. 2,430, of December 17, 1997, and Decree No. 3,595, of September 8, 2000, RESOLVED to issue the following Instruction:

Art. 1

Articles 2, 11, 22, 23-A of CVM Instruction No. 279, of May 14, 1998, shall enter into force with the following wording:

"Art. 2

The Fund shall adopt the denomination "Mutual Fund for Privatization – FGTS", complemented by the identification of the issuer of the securities that make up the portfolio, in the manner provided for in Art. 22 of this Instruction, and its shares shall be fully paid with resources resulting from the partial conversion of the FGTS balances of the participants referred to in the sole paragraph of Art. 1 of this Instruction or resulting from the transfer provided for in item II of Art. 20 of this Instruction.

......". (NR)

"Art. 11. ......

§2

Only mergers and incorporations of Mutual Funds for Privatization – FGTS that have in their portfolio securities from the same issuer may be carried out, in accordance with Art. 22 of this Instruction, and it is also permitted to carry out mergers and incorporations of Mutual Funds for Privatization – FGTS Free Portfolio with compatible investment policies.

......". (NR)

"Art. 22. ......

§1

The first acquisition of securities by the Fund shall take place in the manner provided for in item I of this article and shall target securities from a single issuer.

§2

The Fund may acquire, on a stock exchange or in an organized over-the-counter market, securities issued by the same issuer as the securities that already make up its portfolio.

CVM INSTRUCTION NO. 360, OF JANUARY 29, 2002.
2

§3

Resources resulting from transfers from other Mutual Funds for Privatization – FGTS, occurring before the financial settlement of the securities acquired within the scope of the National Privatization Program or the State Privatization Programs, must be invested obligatorily in private fixed-income titles or federal public fixed-income titles.

§4

If, after the first acquisition of securities by the Fund, investments in fixed-income titles represent more than ten percent of the Fund's net asset value, the Fund must comply with the aforementioned limit within a maximum period of 180 (one hundred and eighty) days, counted from the financial settlement of the securities acquired within the scope of the National Privatization Program or the State Privatization Programs." (NR)

"Art. 23-A.

......

IV - shares of investment funds traded in market indices, regulated by the CVM.

......

§3

The Mutual Fund for Privatization – FGTS Free Portfolio must comply with the limit provided for in item II of this article, within a maximum period of 60 (sixty) days after the start of its activities." (NR)

Art. 2

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

Original signed by

WLADIMIR CASTELO BRANCO CASTRO
Acting President