CVM Instruction No. 415 of February 22, 2005

CVM INSTRUCTION NO. 415, OF FEBRUARY 22, 2005.
Adds provisions to CVM Instruction No. 209, of March 25, 1994.

The PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION – CVM makes public that the Collegiate Board, in a meeting held on February 22, 2005, and in view of the provisions of Articles 2 and 19 of Law No. 6,385, of December 7, 1976, resolved to issue the following Instruction:

Art. 1
Chapter XI-A and the following Articles 43-A and 43-B are added to CVM Instruction No. 209, of March 25, 1994.

"CHAPTER XI-A
OF INVESTMENT FUNDS IN INNOVATIVE EMERGING COMPANIES

"Art. 43-A. The constitution, operation, and administration of the investment funds referred to in Article 23 of Law No. 10,973, of December 2, 2004, shall be governed by the provisions of this Instruction.

§1o The investment funds referred to in the caput shall contain, in their name, the expression "Innovative Emerging Company Investment Fund," and shall be intended for application in a diversified portfolio of securities issued by innovative emerging companies.

§2o For the purposes of the provision in § 1o, innovative emerging companies are considered to be companies, constituted as joint-stock companies, whose main activity is directed towards the introduction of novelty or improvement in the productive or social environment that results in new products, processes, or services, in accordance with item IV of Article 2 of Law No. 10,973, of 2004." (NR)

"Art. 43-B. Once constituted and authorized for operation, the Innovative Emerging Company Investment Fund must maintain, in minimum, 75% (seventy-five percent) of its applications in shares, debentures convertible into shares, or subscription warrants for shares issued by innovative emerging companies.

Sole Paragraph. Observed the provisions of §§ 2 and 3 of Article 26, the portion of the fund's assets that is not invested in securities of innovative emerging companies must, obligatorily, be invested in:

I – shares of fixed-income funds;
II – fixed-income securities of free choice by the administrator;

CVM INSTRUCTION NO. 415, OF FEBRUARY 22, 2005.
2

III – shares, debentures convertible into shares, or subscription warrants for shares issued by emerging companies that are not considered innovative; or IV – securities issued by open companies acquired on a stock exchange or organized over-the-counter market." (NR)

Art. 2 This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Original signed by
MARCELO FERNANDEZ TRINDADE
President