CVM Instruction No. 392 of July 18, 2003

CVM INSTRUCTION NO. 392, OF JULY 18, 2003.

Provides for the provision of guarantees for operations by the fund itself and for the lending of securities and financial assets by financial investment funds and by funds applying in shares of investment funds.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on July 14, 2003, in view of the provisions of Articles 2, item IX, and 8, item I, of Law No. 6,385, of December 7, 1976, as amended by Law No. 10,303, of October 31, 2001, and in Joint Decision No. 10, of May 2, 2002, of the Central Bank of Brazil and the CVM, RESOLVED to issue the following Instruction:

Art. 1 Financial investment funds and funds applying in shares of investment funds may use their assets to provide guarantees for their own operations conducted on stock exchanges, as well as to lend and borrow securities and financial assets in lending, provided that such lending operations are conducted exclusively through a service authorized by the CVM or by the Central Bank of Brazil and maintained by a clearing and settlement entity.

Sole Paragraph. The prohibitions set forth in items I and II of Article 10 and in Article 36 of the regulation annexed to BACEN Circular No. 2,616, of September 18, 1995, do not apply to the operations referred to in the caput.

Art. 2 This Instruction enters into force 15 (fifteen) days after the date of its publication in the Official Gazette of the Union.

Signed original by
LUIZ LEONARDO CANTIDIANO
President