Proposals Needed from Afore for Consensus on LMV

Riviera Maya, QR., Mexico still has ample potential to access financing through the stock market, according to Omar Mejía Castelazo, deputy governor of the Bank of Mexico (BdeM). During his participation in the 2024 Issuers Forum organized by the Mexican Stock Exchange (BMV), the deputy governor highlighted that Mexico has a long way to go compared to other economies. The changes proposed by the Securities Market Law (LMV) aim to enable companies to access stock financing and provide the market with greater tools and flexibility, as well as generate incentives to attract more participants, as described by the monetary authority.

Participants in the stock market sector are eagerly awaiting the publication of the secondary regulation to begin giving viability to projects waiting or in the pipeline to access the stock market with the new flexibility. The National Banking and Securities Commission (CNBV) is waiting for proposals from the National Commission of the Retirement Savings System (Consar) before publishing the changes. It is expected to be ready by July, before the end of the six-year term, according to Jesús de la Fuente Rodríguez, president of the commission.

The preparation of the secondary regulation addresses issues such as defining the size of companies eligible for simplified issuance of shares or debt and accessing stock market financing through simplified issuances of debt and capital securities to reduce time, cost, and procedures for listing these securities. De la Fuente Rodríguez emphasized the importance of reaching a consensus with all sectors involved in order for the provisions to be met. The dialogue with all sectors involved delayed the process, but consensus is key in implementing the reform unanimously.

The preparation of the secondary regulation of the Securities Market Law reform, approved a year ago in the Legislature, proved to be more complex than anticipated by the industry. Participants are looking forward to the release of the secondary regulation to enhance the accessibility of stock market financing for companies in Mexico.