Brazil: Capital market regulation

The Securities and Exchange Commission (CVM) (content in portuguese) is the Government body that regulates the capital market in Brazil. In practice, the CVM assures the proper functioning of the stock and over-the-counter markets. Its main function is to evaluate the regularity of the stock issues at the Securities, Commodities and Futures Exchange (BM&FBovespa) (content in portuguese) and detect possible illegal acts committed by stockholders and controllers of publicly-traded companies. CVM also supervises frauds or handlings that can generate extreme price variances in listed stocks. In the event the irregularities are proven, CVM establishes the punishments to be applied.

When a company decides to publicly trade its capital, that means, to offer part of the company to the investors (individuals and legal entities) on the stock exchange, at a preset price, it must file a request with CVM to
Bovespa The capital market is regulated by the Securities and Exchange Commission Enlarge

The capital market is regulated by the Securities and Exchange Commission

publicly trade its capital. And it is the body that is in charge of authorizing both the capital going public and the stock issue. CVM is also responsible for authorizing the operation of brokerage firms and the financial analysts’ action. Only analysts authorized by this body can issue reports and assessments about the companies that have stocks listed in the Brazilian Stock Exchange.

In the body website, the citizen can access the list of companies that have filed requests to publicly trade their capital on the Stock Exchange, registry information and investment funds yield information, besides all the relevant facts published by the publicly-traded companies.