REFORM OF THE SECURITIES MARKET – RVA abogados

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REFORM OF THE SECURITIES MARKET

On December 28, 2023, the Ministry of Finance and Public Credit (hereinafter “SHCP”) published in the Official Gazette the “Decree by which various provisions of the Securities Market Law and the Investment Funds Law are reformed, added, and repealed”, a reform mainly focused on benefiting small and medium-sized Mexican enterprises (hereinafter “SMEs”).
This reform aims to simplify and expedite the process of issuing debt and stock, thereby providing these companies with a new accessible means for obtaining financing. Additionally, it actively promotes the issuance of offerings, creating a conducive environment that particularly benefits medium-sized enterprises, enabling them to seize opportunities more effectively within the stock market.
Collectively, these changes aim to drive the modernization, strengthening, and active participation of SMEs in the financial sphere, stimulating economic growth and business prosperity. Likewise, the reform will generate a significant boost in terms of competition and dynamism.

Another one of the most relevant aspects to consider in this decree is the addition of Article 9 Bis, which urges the SHCP to establish or issue general administrative provisions. These provisions aim to promote sustainable development and sustainability, as well as strengthen gender equality in the stock market, through the promotion, information, and evaluation of the adoption of best practices.

In connection with the aforementioned, the foundations are set for the SHCP to issue a solid and formal regulation regarding sustainable financing in Mexico. This regulatory framework will be oriented towards ensuring the proper compliance with ESG (Environmental, Social, and Governance) policies by financial, banking, and stock market entities, among others. This process marks the beginning of a transition to green or sustainable financing, significantly impacting all entities under the jurisdiction of the National Banking and Securities Commission (hereinafter the “CNBV”).
Finally, for the implementing of the reform, the decree sets forth that the CNBV and the Bank of Mexico will have a term of one year to issue the secondary rules that shall determine the applicable guidelines and instructions.

Mexico City,
January 8th, 2024

The information contained herein is for information purposes only and is not intended to be a legal opinion or provide advice on any particular case. In case you require any specific guidance, before making any decision, you can contact us; we will be delighted to assist you on this matter.

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www.rvaabogados.com
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