The Mexican government has proposed significant amendments to its Stock Exchange Act (Ley del Mercado de Valores or LMV) and Investment Funds Law (Ley de Fondos de Inversión or LFI) aiming to improve access for small and medium-sized companies to capital markets and expanding investment opportunities. Below, we provide a general overview of the proposed amendments to the LMV and the LFI, as well as their potential impact on issuers, investors, and other market participants.
Introduction
Mexico has made significant progress in developing its capital markets sector in recent years, driven by reforms aimed at increasing competition, transparency, and investor protection. The most recent amendments to the LMV changed the standards for securities to be traded from merit requirements to disclosure requirements. The intent was to have the Mexican stock exchanges (bolsas de valores) expanded and facilitate the access of companies to investor financing.
That effort was not sufficient, and small and medium-sized companies still face significant barriers, including significant costs to obtain and maintain the registration in the Mexican Registry of Securities (Registro Nacional de Valores or RNV) and the listing in the list of securities in the Mexican stock exchanges (Listado de Valores autorizados para Cotizar) and to access funding available through those exchanges, limiting their growth potential and constraining the overall development of the sector.
The proposed series of amendments Read more
