Legal Mandates of CVM

Market development

Stimulate the formation of savings and its application in securities; promote the efficient and regular expansion and functioning of the stock market; and stimulate permanent investments in shares of the capital stock of publicly-held companies controlled by national private capitals (Law 6.385/76, art. 4, items I and II).

Efficiency and functioning of the market

Ensure the efficient and regular operation of the stock and OTC markets; ensure the observance of fair trade practices in the securities market; and ensure compliance, in the market, with the conditions of use of credit laid down by the National Monetary Council (Law 6.385/76, art. 4, items III, VII and VIII).

Protection of investors

Protect the holders of securities and the investors of the market against irregular issuance of securities; illegal acts of directors and controlling stock holders of publicly-held companies, or administrators of securities portfolio; and the use of relevant information not disclosed in the securities market. Prevent or discourage modalities of fraud or manipulation intended to create artificial conditions of demand, supply or price of securities traded on the market (Law 6.385/76, art. 4, items IV and V).

Access to appropriate information

Ensure public access to information on securities traded and the companies that issued them, regulating the Law and administering the registration system for issuers, distribution and regulated agents (Law 6.385/76, art. 4, item VI, and art. 8, items I and II).

Supervision and sanction

Continuously monitor the activities and services of the securities market, as well as the disclosure of information related to the market, its participants and securities traded therein, and impose penalties for offenders of Laws 6.404/76 and 6.385/76, CVM rules or special laws whose enforcement is under CVM´s responsibility (Law 6385/76, art. 8, lines III and V, and art. 11).