Brazilian Securities Commission

Brazil: Capital Markets and the Securities Commission

by Euchério Lerner Rodrigues   June, 1996

The CVM was created in 1976 through the Law No. 6,385 with the objective of regulating and disciplining the workings of the Brazilian capital market and, consequently, to fulfil the role of one of the institutions responsible for the process of building up savings and assisting economic development. In this way, by offering investors appropriate security and operational flexibility on the capital market, it contributes towards the process of company capitalization, the dispersion of prosperity and better allocation of productive sector resources.

In order achieve objectives, the CVM assumes the following main functions

  • ensure the efficient,
  • reliable and equitable working of the securities market and foment its expansion on these suppositions,
  • protect investors and securities holders by avoiding or preventing irregularities, frauds and manipulative practices designed to create artificial conditions of demand, supply or price,
  • ensure the ample and fair disclosure of relevant information concerning securities trades and the companies issuing such paper

The report was written by Euchério Lerner Rodrigues. Mr. Rodrigues is an official of the CVM and is also a professor of finance in Brazil, specializing in capital markets and derivatives.