Capital Markets Newsletter – October 2022

SMV Regulations

By Resolution SMV Nº 026-2022-SMV/01, published on October 30, 2022 in the Official Gazette “El Peruano”, the SMV modified Article 5 of Resolution CONASEV Nº 021-99-EF/94. 10, to establish that the Complementary Provisions to Articles 49-B (referring to the forced execution of the reporting transaction and effects) and 49-C (referring to the abandonment of the reporting transaction and the awarding of the respective principal and margin calls) of the Lima Stock Exchange’s Stock Market Trading Regulations, adopted by the last mentioned resolution (“Trading Regulations”), once adopted by the Lima Stock Exchange, shall also require, for their application, prior authorization from the SMV.

SMV adopts amendment of Articles 27 and 40 of the Trading Regulation and the Complementary Provision to Article 27 of said regulation. By Resolution SMV Nº 025-2022-SMV/01, published on October 5, 2022 in the Official Gazette “El Peruano”, the SMV adopted the amendment of Articles 27 and 40 of the Trading Regulation and the Complementary Provision to Article 27 of the aforementioned regulation, to establish mainly the following:

1. The procedure to remove securities from the Reference Securities Table when: (i) an issuer of foreign securities requests the initiation of an exclusion procedure of such securities before the SMV; (ii) when such issuer decides to exclude the mentioned securities from its home market, or informs that such securities shall be excluded from its home market by legal, regulatory or other provisions.
2. The treatment of the reporting operations in force when the following situations occur: (a) the assumptions indicated in (i) and (ii) of numeral 1. above; and, (b) an issuer of national securities not subject to public offer of purchase of securities by exclusion (OPC) requests the initiation of an exclusion procedure of such securities before the SMV.

SMV adopts amendment to Articles 40-A, 40-B and 40-C of the Trading Regulation. By Resolution SMV Nº 024-2022-SMV/01, published on October 5, 2022 in the Official Gazette “El Peruano”, the SMV adopted the amendment of Articles 40-A, 40-B and 40-C of the Trading Regulation, to introduce changes and regulate in greater detail mainly the following:

1. The period the securities settlement clearing institution (e.g. CAVALI S.A. I.C.L.V.) has to communicate the non-compliance of a reporting transaction;
2. The period of time the reporting company has to communicate its decision to opt for the forced execution of guarantees or the abandonment of the operation, in case of such non-compliance;
3. The period of time for which the reporting company shall be suspended as a result of such non-compliance; and,
4. The procedure for the forced execution of the reporting transaction in the event of non-compliance.

SMV Drafts

SMV authorizes the publication of the Draft that modifies Article 5 of Resolution CONASEV Nº 021-99-EF/94.10. By Resolution SMV Nº 023-2022-SMV/01, published in the Official Gazette El Peruano on October 2, 2022, the publication of the above-mentioned draft, which proposed the modification that was adopted by Resolution SMV Nº 026-2022-SMV/01, mentioned above, was authorized for the reception of comments from the public.