BMFBovespa-MervalNEXT: Autoreg to Take Effect

Valor Online: In 90 days, a new autoregulation scheme for the BM&F-Bovespa goes into effect.

I gistlate — translate a little here, gist a list there — the brief item, although I am sure you probably already read about it from Mondo Visione.

The self-regulator, not dissimilar to NYSE Regulation, is known as the BSM, or BM&F-Bovespa Makret Supervisor.

On May 10, new rules go into effect for companies listed in the Level 1, Level 2, and Novo Mercado listing segments, for companies meeting differentiatd governance requirements, of the Bovespa stock exchange

The reform took two years to negotiate and was partially approved late last year. The Comissão de Valores Mobiliários (CVM) approved the changes in its March 21 meeting, with one demurrer.

Listed companies now have 90 to hold extraordinary shareholder meetings in order to enact the necessary changes to their corporate charters.

Among the new rules:

1. No one may serve as CEO and Chairman of the board simultaneously;
2. Publication of a trading policy for the company’s shares;
3. Creation of a corporate code of conduct

The CVM asked the Bovespa to isseu a public clarification of Article  8.2 of the new regulatory framework, which deals with the acquisition of the company by means of an accord with the company’s controlling shareholder. The Bovespa said it would comply “in a timely fashion.”

I will read over the new rules when I get a chance.