The Brazilian Securities Commission (CVM) issued a new rule allowing listed companies to publish "relevant facts" on news websites on the internet, rather than physical newspapers.

All Brazilian listed companies are required to immediately disclose to the market any relevant information that may affect the value of their securities. These are known as "relevant facts".

Prior to the new CVM rule, which will become effective on March, 10, 2014, companies had to publish "relevant facts" in widely circulated newspapers. The costs of these publications often created a barrier for emerging or middle-size companies that wanted to become listed companies.

It is expected, therefore, that the exemption of publication in newspapers will have an immediate effect in reducing the maintenance costs of listed companies, thereby increasing the attractiveness of Brazilian capital markets as a financing alternative for different companies.

In order to take advantage of the new rule, listed companies will need to update their official policies of disclosure and communicate the changes through the old channels used for publication of "relevant facts".

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