Explanatory Note to CVM Instruction 155

EXPLANATORY NOTE TO CVM INSTRUCTION NO. 155, OF AUGUST 7, 1991.
Ref.: Instruction that introduces modifications to the provisions of CVM INSTRUCTION NO. 134, of November 1, 1990, which regulates the issuance of Promissory Notes for public distribution.

In continuation of the effort being developed by the CVM to expand the Brazilian capital market by enabling its participants access to new instruments, we are publishing this Instruction that simplifies the requirements established for companies interested in placing their own Promissory Notes in the market.

The purpose of the prior registration regulation with the CVM is to guarantee investors access to a set of information sufficient to evaluate the investment opportunities offered to them, always weighing the costs incurred against the benefits obtained by investors.

Thus, believing that large-scale investors possess their own means to obtain the information necessary for their investment decisions, the CVM is exempting from compliance with the issuer company registration requirements, as well as the limits imposed by current regulation, for distributions that are carried out without special publicity efforts and that involve Promissory Notes with a minimum value of Cr$ 100,000,000.00 (one hundred million cruzeiros).

Signed original by
ARY OSWALDO MATTOS FILHO
President