Decree No. 3995, Of 31 October 2001

Original Language Title: Decreto nº 3.995, de 31 de Outubro de 2001

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DECREE NO. 3,995, OF October 31, 2001

Altera and adding devices to the Law No. 6,385 of December 7, 1976, which has on the securities market, in the subjects reserved the decree.

THE VICE PRESIDENT OF THE REPUBLIC, in the exercise of the post of President of the Republic, using the assignment that gives him the point? of the inciso VI of the art. 84 of the Constitution,

D And C R And T A:

Art. 1º The arts. 6º, 8º, 9º, 11, 15, 22 and 24 of the Law No. 6,385 of December 7, 1976, go on to invigorate with the following essay:

?Art. 6º ............................................................................................................................................

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§ 7º The Commission will function as the collegiate deliberation body in accordance with its internal regiment, and in which the assignments of the President, Directors and the Colegiate will be fixed.? (NR)

?Art. 8º .......................................................................................................................................

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§ 1º The provisions of this article do not exclude the competence of the Stock exchanges, the Commodity Exchanges and Futures, and the clearing and settlement entities with respect to their members and the securities traded therein.

§ 2º Will be made public access all documents and autos of administrative proceedings, re-salvaged those whose secrecy is necessary for the defense of intimacy or social interest, or whose secrecy is secured by express legal provision.

...........................................................................................................................................? (NR)

?Art. 9º The Securities Commission, observed the provisions of § 2º of the art. 15, may:

I-examine and extract copies of accounting records, books or documents, including electronic programs and magnetic, optical or from any other nature, as well as work papers of auditors independent, owing such documents to be kept in perfect order and state of conservation for the minimum term of five years:

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g) of other people any, natural or legal, when from the occurrence of any wrongdoing to be ascertained in the terms of the inciso V of this article, for the purpose of verification of occurrence of illegal acts or non-eequitative practices;

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§ 1º With the end of preventing or correcting abnormal situations from the market, the Commission will be able to:

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§ 2º The process, in cases of the inciso V of this article, may be preceded by investigative step, where the necessary secrecy will be secured to the elucidation of the facts or required by the public interest, and shall observe the procedure laid down by the Commission.

§ 3º Where the public interest requires, the Commission may disclose the initiation of the investigative procedure referred to in § 2º.

§ 4º In the investigation of the infractions of the securities market legislation, the Commission should giving priority to infractions of a serious nature, the apenation of which provides greater educational and preventive effect for market participants.

§ 5º The judgment sessions of the Colegiate, in the administrative process of which it treats the inciso V of this article, shall be public, and may be restricted to third party access depending on the public interest involved.

§ 6º The Commission shall be competent to establish and punish fraudulent conduct in the market of values securities whenever:

I-its effects occasioned harm to persons residing in the national territory, regardless of where they occurred; and

II-the relevant acts or omissions have been practiced in national territory.? (NR)

?Art. 11 .. .......................................................................................................................................

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§ 5º The Securities Commission will be able to, at its sole criterion, if the public interest allows, to suspend, at any stage, the administrative procedure instituted for the ascertaining of infractions of the securities market legislation, if the investigated or accused sign term of commitment, obliging to:

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§ 10. The Securities Commission shall regulate the application of the provisions of § § 5º to 9º of this article to the procedures conducted by the Stock Grants, Markets of Goods and Futures, entities of the organized counter market and entities of clearing and settlement of securities with securities.

§ 11. The fine comprised of the order inexecution of the Securities Commission, pursuant to the inciso II of the caput of the art. 9º and of the inciso IV of its § 1º will not exceed R$ 5,000.00 (five thousand reais) per day of delay in its compliance and its application independs on the administrative process provided for in the inciso V of the caput of the same article.

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?Art. 15. .......................................................................................................................................

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§ 1º Compete to the Securities Commission define:

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?Art. 22. ..........................................................................................................................................

§ 1º Compete to the Securities Commission exasking standards applicable to the companies open about:

I-the nature of the information that they should disclose and the periodicity of disclosure;

II-report of the administration and financial statements;

III-the purchase of shares issued by the company itself and the disposal of the treasury shares;

IV-standards of accounting, reporting and opinions of independent auditors;

V-information that should be provided by administrators, members of the tax board, controlling and minority shareholders, concerning the purchase, exchange or sale of securities issued by the company and by controlled or controlling companies;

VI-a disclosure of deliberations of the general assembly and of the company's governing bodies, or of relevant facts that have occurred in their business, which may influence, in a ponderable manner, in the decision of the market investors, to sell or buy values securities issued by the company;

VII-the realization, by the open companies with shares admitted to trading in exchange or in the organized over-the-counter market, of annual meetings with their shareholders and agents of the market of securities, at the place of further trading of the company's securities in the previous year, for the disclosure of information as to the respective economic-financial situation, projections of results and response to the clarifications being made to them requested;

VIII-the remaining subjects provided in law.

§ 2º The standards edited by the Securities Commission in relation to the provisions of the incisies II and IV of § 1º apply to the institutions financial and too many entities authorized to function by the Central Bank of Brazil, in what are not conflicting with the norms by it downloaded.? (NR)

?Art. 24. It is incumbent upon the Commission to authorize the activity of securities custody, the exercise of which will be deprivative of financial institutions and clearing and settlement entities.

...............................................................................................................................................? (NR)

Art. 2º The Law No. 6,385, 1976, passes the increased vigour of the art. 21-A, with the following essay:

?Art. 21-A. The Securities Commission will be able to exact standards applicable to the nature of the minimum information and the periodicity of its submission by any person who has access to relevant information.? (NR)

Art. 3º This Decree takes effect on the date of its publication, producing effects, in relation to the companies already constituted, after decorations one hundred and twenty days from that date.

Brasilia, 31 of October 2001; 180º of Independence and 113º of the Republic.

Marco Antonio De Oliveira Maciel

Pedro Malan