Portada NATIONAL STOCK EXCHANGE
by Kattia Dahdah

New Products in the Stock Market

This past December, the new Stock Market and Merchandise Law was passed, creating new business opportunities in the stock market. This new Law establishes the juridical frame for the stock market, public issuance of stock, merchandise and contracts, people involved in the market, and the grading of stock, thus providing adequate regulations that will contribute to development of a transparent, organized stock market that will benefit its participants.

As its starting point, the Law sets a new definition for stock, thus erasing the prior controversy on atypical stock. Also, it provides new options for institutional investment in the market, such as Investment Trusts and Fund and Fideicommissum contracts, which will now be defined and regulated.

Another noteworthy change is that the Law clarifies what pertains to dematerialized stock. Dematerializing stock facilitates and increases the security of stock management.

The Law contemplates a wide margin of self regulation by creating the Registry of Stock and Merchandise. This entity, under the Ministry of Economy, will make sure that the market develops in accordance with its own dispositions and those of the Law.

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February, 1997