Simplified stock market issues, with potential: CNBV

Riviera Maya, Q.Roo.- Within the framework of the secondary regulation of the Securities Market and Investment Funds Law (LMV), it is intended that companies that are not registered with the National Securities Registry (RNV) may carry out the simplified registration procedure, said Leonardo Molina.

The Director of Issuers of the National Banking and Securities Commission (CNBV) commented that the participation of financial intermediaries and stock exchanges is therefore "fundamental" to helping companies "implement this differentiated alternative regime that allows them to reduce costs, time, and requirements in their access to financing sources."

During his participation in the 14th Issuers Forum, organized by the Mexican Stock Exchange (BMV), the official explained that the secondary regulations establish the securities that will be subject to issuance under the simplified regime. These are basically shares, ordinary participation certificates, debt, asset-backed securities, and structured securities.

Leonardo Molina said the simplified issuance regime has great potential, but its success "will depend on how some challenges are resolved in the short term."

Among the challenges are, for example, maintaining the confidence of institutional investors and adapting the communication and dissemination of the benefits of the simplified issuance regime to market participants, including authorities.

Molina said that under this simplified regime, the CNBV "will no longer supervise these broadcasters."

He added that it will be sufficient for issuers, together with their financial intermediaries, to issue the necessary documentation to brokerage firms and stock exchanges, so that these, in turn, issue a favorable opinion to the CNBV so that the issuer in question "can begin, almost immediately, to be listed on the Stock Exchange."

Training

Leonardo Molina said it is very important that companies that are likely to issue simplified securities receive adequate training regarding the implications of becoming a simplified public company, including the professionalization of their corporate governance and their operational, legal, and accounting areas.

He explained that "an adequate risk analysis of simplified issuers will be required, considering that the information available to investors for decision-making will be different from that available under the ordinary securities issuance regime."

Molina said the CNBV is analyzing some mechanisms "or incentives" to attract more broadcasters to this simplified regime.

Some proposals include exploring the feasibility of allowing companies that are subsidiaries or associates of issuers with securities registered under the ordinary regime to also issue simplified securities.

He also said that the feasibility of unregulated Multiple Purpose Financial Companies (Sofomes) being able to issue simplified debt securities without having to transition to becoming regulated Sofomes as currently established by law is being analyzed.

Molina said that the disclosure of Environmental, Social, and Governance (ESG) information "has become a priority for investors, and industry participants are responsible for promoting measures to mitigate environmental impact." Finally, he noted that detailed annual ESG reports audited by external parties will be mandatory starting in 2027.