The new Stock Market Law, which is being discussed in the Senate, opens the way for small and medium-sized companies (SMEs) to reach any of the stock exchanges that operate in Mexico.
The proposed amendment to the current legislation proposes simplified registration of securities that allow SMEs to reach the stock market through the issuance of debt or capital to obtain financing for their growth.
The initiative determines that the National Banking and Securities Commission (CNBV) will be the regulatory entity that through general provisions. facilitate in an agile and efficient way, according to the needs of the market, the rules for the list of companies.
It is clarified that the issuers that currently participate in the stock market could not be part of the simplified registration of securities, which seeks to avoid creating incentives that relax the corporate governance requirements of large companies.
For their part, brokerage firms must participate in structuring the operations of companies that intend to become simplified issuers, by reviewing the necessary documentation to prove that they meet the requirements to participate in the simplified registration of securities, as well as those that should be disclosed to prospective investors, such as the placement prospectus or information brochure.
The two stock exchanges that operate in Mexico, the Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (BIVA) must check that all the requirements are met and proceed to apply to the issuers to the CNBV for incorporation into the National Registry of Securities its simplified registration.
It will suffice for the CNBV to have the approval of the stock exchanges for the registration to proceed, in accordance with the proposal. With the foregoing, brokerage firms will be able to broker securities with institutional or qualified investors. The limitation is due to the level of risk of said operations, so it will be vetoed for the retail or retail investor.
The rating agencies will have to adopt their evaluation methodologies for this type of instrument, in accordance with the proposal.
The project proposes to establish limits, which will be defined by the CNBV so that issuers can carry out simplified issues, in order to mature them and that will allow them to participate in a future stock market aimed at the general investing public.
It is established that the owners of the companies will not lose control of their business before the arrival of new capitalist partners.
In addition, the Ministry of Finance will establish provisions of best sustainability and gender practices that companies must comply with.
