São Paulo’s stock exchange to loosen rules and deadlines amid Covid-19 pandemic

Following the guidelines of the Brazilian Securities Commission (CVM) and Provisional Decree 931, B3 — the company that administers the São Paulo stock exchange — is adjusting some of its rules and deadlines during the coronavirus pandemic, according to B3 Issuers Director, Flavia Mouta. The main changes are as follows:

• B3 will not monitor penny stocks to make sure they are above the BRL 1/stock level for the time being. Companies will have six months to adjust the share’s value.
• Companies that breach rules in enforcement processes will have 15 to 30 days to submit their defense.
• Companies listed on high governance levels (Levels 1, 2, and New Market) will have 18 months to adjust in case their stocks’ free-float falls below the 25 percent threshold due to buyback programs created amid the crisis.
• B3 won’t issue warnings to companies that breach rules related to the composition of their board of directors, but they must be compliant before their next shareholders’ meeting.
• During the pandemic, the rule that prohibited chief executives to act as board chairman is suspended.
• Companies will have 10 working days, not 5, to host conference calls to report earnings.

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