Article 1. The following activities shall be governed by and controlled in accordance with this law:(Text as determined by Law no. 10.303, of October 31, 2001)

I- The issuing and distribution of securities on the market; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

II- The trading and intermediation on the securities market; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

III- The trading and intermediation in the derivatives market; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

IV- The organization and operation of Stock Exchanges; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

V- The organization and operation of commodities and Futures Exchanges; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

VI- The management of securities portfolios and the custody of securities; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

VII- The auditing of publicly-held corporations; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

VIII- The services of securities consultants and advisors (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Article 2. The following securities shall be subject to the provisions of this law: (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

I – shares, debentures and subscription bonuses; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

II – coupons, rights, subscription receipts and split certificates relating to the securities indicated in item I; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

III – certificates of deposit of securities; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

IV – debentures certificates; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

V – shares of mutual funds investing in securities and shares of investment clubs investing in any type of assets; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

VI – commercial papers; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

VII – futures, options and other derivatives agreements whose underlying assets are securities; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

VIII – other derivatives agreements regardless of the respective underlying assets; and (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

IX – when publicly offered, any other collective investment instrument or agreement that creates the right of participation on profits or remuneration, including as a result of the rendering of services, and whose profits derive from the efforts of the entrepreneur or from the efforts of third parties. (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

Paragraph 1. The following are excluded from the provisions of this law: (Former sole paragraph turned into paragraph 1 by Law no. 10.303, of October 31, 2001)

I - Federal, State, or Municipal government bonds; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

II - negotiable instruments guaranteed by a financial institution, with the exception of debentures. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Paragraph 2. The issuer of the securities referred to in this Sectionarticle, as well as their managers and controlling parties, are subject to the rules established by this Law with respect to publicly-held corporations. (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

Paragraph 3. The Brazilian Securities CommissionSecurities and Exchange Commission of Brazil shall be responsible for issuing regulations in order to give effect to the provisions of this Sectionarticle, being empowered to: (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

I – require that the issuers be incorporated as stock corporations; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

II – require that the financial statements of the issuers, or information concerning the applicable project, be audited by an independent auditor registered with the Brazilian Securities CommissionSecurities and Exchange Commission of Brazil; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

III – waive the requirement of participation of a company comprising the system established in Section article 15 of this Law in a public offering of securities; (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

IV – establish standard clauses and conditions to be adopted in the investment instruments and agreements to be traded in Stock Exchanges or in organized or non-organized over-the-counter markets, and refuse the trading of any issue that fails to meet such standards (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

V - approve the staff and personnel regulation of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) and establish the remuneration of the chairman, commissioners, holders of trusted positions, and other employees. (Text added by Law no. 6.422 of June 8, 1977Text added by Law 6.422 of June 8, 1977)

1. the irregular issue of securities;
2. illegal acts of officers and controlling shareholders of publicly held corporations, or managers of securities portfolios;
3. the use of relevant information not disclosed to the market. (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

Article 5. The Commissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM), an independent government entity linked to the Ministry of Finance, with own legal entity and assets, endowed with independent administrative authority, absence of hierarchic subordination, fixed mandate and stability of its Board of Commissioners, and financial and budgetary authonomy, is hereby created. . (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Article 6. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall be managed by a chairman and four commissioners appointed by the President of the Republic, after approved by the Federal Senate, who shall be individuals of faultless reputation and acknowledged competence in capital markets. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 1. The mandate of the Board of Commissioners shall be of five years, with no reconduction, having to be renewed each year one fifth of the members of the Board. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 2. The members of the Board will only lose the mandate in case of resignation, transited judicial conviction or administrative procedure. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 3. Regardless the provisions of the penal law and the improbity administrative law, the non-observance, by the chairman or one of the commissioners, of the duties and the inherent prohibitions to their position may cause their dismissal. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 4. The Minister of Economy shall provide the administrative procedure, which will be taken by a special commission, and the President of the Republic may impose the preventive removal of the duties, as it is necessary, and also judge the case. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 5. In case of resignation, death or loss of the duties of the President of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM), the one which that is at longest duty or the most aged commissioner, in this order, shall be in charge, regardless of his attributions, until new designation. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 6. In case of resignation, death or loss of the duties of a chairman, there will be a new designation for his position in order to complete his mandate, according to this law. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Paragraph 7. The Commissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall operate as a deliberation agency in accordance with its internal regulation, which shall establish the duties of the chairman, the commissioners, and the board. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

V - fees payable in exchange for the exercise of its police powers, as provided by law. (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

Paragraph 1. The provisions of this article do not exclude the authority of the Stock exchange, the Commodities and Futures exchanges, and of the entities of clearing and settlement with regard to their members and the securities traded thereon. (Text as determined by Decree- Law no 3.995, of October 31, 2001)

Paragraph 2. Shall be of public access all the documents and files of administrative procedures, excepted those which secrecy is essential for the defense of the privacy or the social interest, or which secrecy is assured by express legal disposal. (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

Article 9. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM), with due regard for the provisions of article 15, paragraph 2, may: (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

I- examine and extract examples of accounting records, books or documents, including electronic programs, magnetic and optical files, as well as any other files, and also the paperwork of independent auditors. All of them have to be organized and preserved intact for at least 5 (five) years. (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

1. individuals and corporations pertaining to the securities distribution system (article 15);
2. of publicly-held corporations and other issuers of securities and, whenever there are indicia of illegal activities, of the corresponding controlling and controlled companies, affiliated companies and companies under common control; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)
3. investment funds and corporations;
4. securities portfolios and custodians (articles 23 and 24);
5. independent auditors;
6. securities analysts and consultants;
7. any other individuals or legal entities whenever they participate in any irregularities, which shall be investigated according to item V of this article, to ensure the non- occurrence of any illegal acts and inequitable acts. (Text as determined by Law no 3.995, of October 31, 2001)

II – issue subpoenas requesting information or clarifications to the persons indicated in item I, under penalty of a fine, without prejudice to the penalties set out in Section article 11; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

V – investigate, through administrative proceedings, illegal acts and inequitable practices of managers, members of the finance committee and shareholders of publicly-held corporations, intermediaries, and other market participants; (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Paragraph 1. In order to prevent or correct abnormal market situations, the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) may: (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

Paragraph 2. The procedure, under the item V of this article, may be preceded by an investigation process, which shall ensure the secrecy that the public interest demands, which is necessary for clearing the facts, and shall be subject to the procedure established by the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM). (Text as determined by Decree-Law no 3.995, of October 31, 2001)

Paragraph 3. Whenever the public interest demands, the Comissão (Brazilian Securities Commission)CVM may disclose the establishment of the procedure under paragraph 2. (Text added by Decree-Law no 3.995, of October 31, 2001)

Paragraph 4. In the investigation into the infringement of regulations under the securities market, the Comissão (Brazilian Securities Commission)CVM shall prioritize the violation of the severe nature of the law, which penalties shall educate and prevent the individuals participating in the market. (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

Paragraph 5. The judgment sessions of the Board related to the administrative inquiries as referred in item V of this article, shall be of public nature, access of third parties may be restrained should of the public interest be involved. (Text as determined by Decree-Law no 3.995, of October 31, 2001)

Paragraph 6. The Comissão (Brazilian Securities Commission)CVM shall have authority to investigate as well as to impose penalties on the violators of the laws under the market whenever: (Text as determined by Decree-Law no 3.995, of October 31, 2001)

I. If there has beenit causes damages to individuals living in Brazilian territory, wherever the accident has happened; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

II. Mmaterial actions or omissions have happened in Brazilian territory. (Text added by Decree- Law no 3.995, of October 31, 2001)

Article 10. The Brazilian Securities CommissionThe Securities and Exchange Commission of Brazil may enter into agreements with similar entities in other countries, or with international entities, for assistance and cooperation in the investigations relating to infringement of regulations pertaining to the securities market occurring in Brazil and abroad. (Text as determined by Law no 10.303, of, October 31, 2001)

Paragraph 1. The Brazilian Securities CommissionThe Securities and Exchange Commission of Brazil may refuse to provide the assistance referred to in the this Section 10 (first part)caput of this article when the public interest needs to be preserved. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Paragraph 2. The provisions of this Section shall also apply to information deemed confidential by law. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

III - suspension from duties of a director administrator or member of the fiscal councilstatutory audit committee of a publicly-held corporation, from an entity taking part of the distribution system, or from other bodies which require authorization by, or registration with, the CVM (Brazilian Securities CommissionSecurities and Exchange Commission of Brazil); (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

IV - temporary disqualification, up to a maximum period of 20 years, from occupying the posts mentioned in the previous item; (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

VI - cancelationcancellation of the registration or of the authorization to carry out the activities covered by this law; (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

VII - temporary prohibition, up to a maximum period of 20 years, from practisingpracticing certain activities or transactions, to the entities that compose the distribution system or other entities that depend on authorization by, or registration with, the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) ; (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

VIII - temporary prohibition, for a maximum period of 10 years, to operate, directly or indirectly, in one or more types of transaction in the securities market. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

I - R$ 500,000.00 (five hundred thousand Brazilian reaisReais); (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

II - 50 per cent of the amount of the securities issuing or of the irregular operation; or (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

III - three times the amount of the economic advantage gained or loss avoided due to the violation. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 2. If the offense is repeated, the fines of the previous paragraph can be imposed and multiplied up to three times or, alternatively, the penalties provided for in items III to VIII of this article may be applied. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 3. Except for the provisions of the previous paragraph, the penalties provided for in items III to VIII of the caput of this Aarticle will only apply when there has been a serious breach, as defined by the rules of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) . (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 4. The penalties may only be imposed by observing the procedure provided for in paragraph 2 of aArticle 9, above, and the interested party may appeal to the Council of Appeals of the National Financial System. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 5. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) may, at its discretion, according to the public interest, suspend, at any moment, the administrative procedure opened in order to investigate illegal acts over the securities market legislation, if the defendant or accused signs a settlement instrument compromising to: (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

Paragraph 6. The instrument referred to in the previous paragraph does neither imply a confession of the matter or a recognition that the conduct was illicit. (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

Paragraph 7. The commitment letter shall be published in the Federal Official Gazette, describing the period assigned for compliance with the obligations that have been undertaken, and shall constitute an extrajudicial collection instrument. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Paragraph 8. If the obligations are not fulfilled in time, the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall reopen the suspended administrative procedure in order to apply the relevant penalties. (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

Paragraph 9. When applying the penalties provided for in this law, special consideration will be given to any person who voluntarily confesses an offense or provides relevant information concerning the commitment of an offense. (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

Paragraph 10. The Comissão (Brazilian Securities Commission)CVM shall regulate the observation of the provisions of paragraphs 5 to 9 of this article to the proceedings ruled by the Stock Exchanges, Futures Exchanges, entities of the organized over-the counter market and entities of clearing and settlement. (Text as determined by Decree-Law no 3.995, of October 31, 2001)

Paragraph 11. The fine imposed for not complying with an order of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) under item II of article 9, and item IV of paragraph I of article 9, shall not exceed R$ 5,000.00 (five thousand Brazilian reaisReais) for each day of delay, and its imposition is independent of the administrative procedure provided for in item V of article 9, above. (Text as determined by Decree-Law no 3.995, of October 31, 2001)

Paragraph 12. The party may appeal to the Board of Commissioners, within 10 days from the decision to impose the fine provided for in the previous paragraph without suspensive effect. (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

Article 14. The Brazilian Securities CommissionThe Securities and Exchange Commission of Brazil may provideforecast, in its own budget, appropriations for the endowment of funds to Stock Exchanges and Futures Exchanges. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

V - organized over-the-counter markets; (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

VI – commodities brokers, special operators and the commodities and futures exchanges; and (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

VII – securities clearing and settlement entities. (Text added by Law no. 10.303, of October 31, 2001Text added by Law 10.303, of October 31, 2001)

Paragraph 1. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall define: (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

III- intermediation or brokerage on operations envolvinginvolving titles; (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

IV- clearing and settlement on operations envolvinginvolving titles. (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

Article. 17. The Stock Exchanges, Futures Exchanges, organized over-the-counter market entities and securities clearing and settlement entities shall have administrative and financial autonomy, and shall operate under supervision of the Brazilian Securities CommissionSecurities and Exchange Commission of Brazil. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Paragraph 1. Stock Exchanges, Futures Exchanges, over-the-counter market entities and securities clearing entities, as ancillary entities of the Brazilian Securities CommissionSecurities and Exchange Commission of Brazil, shall be required to supervise their respective members and the securities transactions carried out by them. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Article 17-A. (Vetoed)(VETOED)

I- The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall rule: (Text as determined by Law no 10.411, of February 26, 2002Text as determined by Law 10.411, of February 26, 2002.)

II - registration for trading on the over-the-counter market,, either organized or not. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 2. The registration referred to by article 19 implies the registration for the over-the-counter market, but not for a stock exchange or an organized over-the-counter market entity. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 3. The activities carried out with the participation of the corporations or professionals listed in items I, II, and III of article 15, or in their premises, excluding those made on stock exchanges or on systems administered by entities of the organized over-the-counter market, are considered as being on the non-organized over-the-counter market. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 4. Each stock exchange or entity of the organized over-the-counter market may lay down its own requirements for accepting securities for trading on their floors or systems, once prior approval has been given by the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) . (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Paragraph 5. The organized over-the-counter market shall will be run administrated by entities which that shall operate after previous authorization of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) , which shall issue general rules regarding (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

I - the conditions for their constitution and dissolution, their legal form, and the appointment of members of their boards; (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

II - the exercise of disciplinary authority over their members, the imposition of penalties, and cases of exclusion; (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

III - requirements or conditions for admission regarding credibility, financial capacity, and technical qualifications of the managers and officers of their members; (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

IV - management of the entities, fees, commissions, and any other amount charged by the entities or their members, as the case may be; (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

III - the cases in which the securities may be simultaneously negotiated on a stock exchange and on the over-the-counter market, organized or not. (Text added by Law no. 9.457 of May 5, 1997Text added by Law 9.457 of May 5, 1997.)

Article 21-A. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall issue rules regarding the nature of the minimum information and its periodical presentation by any party who have access to relevant information. (Text added by Decree-Law no 3.995, of October 31, 2001Text added by Decree 3.995, of October 31, 2001.)

Paragraph 1. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall issue regulations applicable to publicly held corporations, concerning: (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

I - the kind of information which must be supplied and how often; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

II - the management report and financial statements; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

III - the purchase of shares issued by the corporation itself and the disposal of treasury shares;(Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

IV - accounting standards; reports and opinions of independent auditors; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

V- information which shall be supplied by officers, members of the statutory audit committee, controlling and small shareholders relating to the purchase, exchange or sale of securities issued by the corporation and by controlled or parent corporations (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

VI - the disclosure of resolutions of the general meeting and the corporation's management bodies, or of relevant events occurring in its operations which may considerably influence the decisions of investors to buy or sell securities issued by the corporation; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

VII - the holding, by publicly held corporations with shares traded on the stock exchange or organized over-the-counter market, of annual meetings with their shareholders and securities market participants, in the city where most of the operations involving the corporation’s securities took place the year before, in order to disclose their financial situation and projected figures, and to answer requests for clarifications; (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

VIII - other topics envisaged by law. (Text as determined by Decree-Law no 3.995, of October 31, 2001Text as determined by Decree 3.995, of October 31, 2001.)

Paragraph 2. The regulations of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) concerning the provisions of items II and IV of the previous paragraph shall apply to financial institutions that are authorized to function by the Central Bank of Brazil, if they are not contrary to its rules. (Text as determined Decree-Law no 3.995, of October 31, 2001).

Article 24. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) shall authorize securities custody activities, which shall be carried out exclusively by financial institutions and entities of clearing and settlement. (Text as determined Decree-Law no. 3.995, of October 31, 2001).

Paragraph 3. In addition to the provisions of the previous paragraph, independent auditors of auditing firms are administratively responsible, before the Central Bank, for the acts or omissions when auditing financial institutions and other entities that are authorized to function by the Central Bank of Brazil. (Text added by Law no. 9.447 of March 14, 1997)

Paragraph 4. In the event of the last paragraph, the Central Bank of Brazil will enforce the offenders the penalties prevision in this article 11 by law. (Text added by law no. 9.447 of March 14, 1997)

Paragraph 5. (VETOED) (Text aRevoked by law no.dded by Law 10.3003, of October 31, 2001))

(Chapter VII-A added by Law 10.303, of October 31, 2001)(Chapter VII-A added by Law no10.303, of October 31, 2001)

Article 27- A. (VETOED). (Text added by Law no. 10.303, of October 31, 2001)

Article 27- B. (VETOED). (Text added by Law no. 10.303, of October 31, 2001)

(Chapter VII-B added by Law no10.303, of October 31, 2001)

Market manipulation (Text added by Law no. 10.303, of October 31, 2001)

Penalty – imprisonment of one (1) to eight (8) years and fine of up to three (3) times the amount of the undue advantage obtained as a result of the crime. (Text added by Law no. 10.303, of October 31, 2001)

Misuse of privileged information (Text added by Law no. 10.303, of October 31, 2001)

Article 27-D. To use relevant information not yet disclosed to the market, which one may know and which must remain confidential, so as to create undue advantages, for oneself or others, through the negotiation of securities, in one’s behalf or on behalf of others: (Text added by Law no. 10.303, of October 31, 2001)

Penalty – imprisonment of one (1) to five (5) years and fine of up to three (3) times the amount of the undue advantage obtained as a result of the crime. (Text added by Law no. 10.303, of October 31, 2001)

Irregular exercise of position, profession, activity or function (Text added by Law no. 10.303, of October 31, 2001)

Penalty – imprisonment of six (6) months to two (2) years and fine. (Text added by Law no. 10.303, of October 31, 2001)

Article 27-F. The fines imposed to the crimes set forth in Sections 27-C and 27-D shall be applied according to the damage caused or the undue advantage obtained by the agent. (Text added by Law no. 10.303, of October 31, 2001)

Sole Sub-ArticleParagraph. In case of repeated offense, the fine may reach up to three times the amounts set forth in this Section. (Text added by Law no. 10.303, of October 31, 2001)

Article 28-A. The Central Bank of Brazil, the Brazilian Securities CommissionSecurities and Exchange Commission of Brazil, the Supplemental Social Security Agency, the Internal Revenue Service and the Superintendency of Private Insurance shall keep a system for the exchange of information relating to the supervision in their respective areas of jurisdiction of the securities market. (Text as determined by Law no. 10.303, of October 31, 2001Text as determined by Law 10.303, of October 31, 2001)

Sole paragraph. The obligation to keep on a confidential basis the information obtained through the exercise of supervisory powers by the entities referred to in this Section 28 (first part) may not be invoked as an impediment for the exchange of information provided for herein. (Text added by Law no. 10.303, of October 31,2001)

Article 29. (Revoked by Law no. 10.303, of October 31, 2001)

Article 30. (Revoked by Law no. 10.303, of October 31, 2001)

Article 31. In any legal proceedings or actions regarding matters included under the authority of the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM), the latter shall always be notified and be given the opportunity to submit an opinion or render explanations within a period of fifteen days of the date of the notice. (Text as determined by Law no. 6.616 of December 16, 1978)

Paragraph 1. The notification shall be made in person or by mail, depending on the existence of Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) offices in the city in which the action or proceeding was filed. (Text as determined by Law no. 6.616 of December 16, 1978)

Paragraph 2. If the Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) submits an opinion or renders explanations, it shall be notified of all subsequent proceedings, either through the official journal which that publishes court procedures or by notified mail, under the terms of the previous paragraph. (Text as determined by Law no. 6.616 of December 16, 1978)

Paragraph 3. The Comissão de Valores Mobiliários (Brazilian Securities Commission)Securities and Exchange Commission of Brazil (CVM) is given the right to appeal if the parties fail to do so. (Text as determined by Law no. 6.616 of December 16,1978)

Paragraph 4. The period for the purpose of the preceding paragraph shall begin to run as of the day immediately after the day on which the period afforded to the parties ends, regardless of further notice. (Text as determined by Law no. 6.616 of December 16, 1978)

Article 33. (Revoked by law no. 9.873, of November 23, 1999)

Article 34. This law shall come into force at the day of its publication. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Article 35. Provisions to the contrary are hereby revoked. (Text as determined by Law no. 9.457 of May 5, 1997Text as determined by Law 9.457 of May 5, 1997.)

Fale com a CVM