Originally published on International Law Office, March 2004.

The Colombian Superintendency of Securities has presented a proposal to amend Article of Resolution 400/95 on the rules of transparency and homogenization.

The proposal sets forth the following innovative measures:

  • The payment of interest on securities placed within the same issue must be made in accordance with the rules in the relevant issuing memorandum, rules that must be homogenous for each of the series;
  • The interest coupons must be the same for each security that is part of a series on the same issue;
  • Securities issued by the Colombian government may be placed at a discount; and
  • The notional value is defined as that set forth in the security at the time of issue and is not subject to variation over the life of the security.

The proposal amends the rules regarding interest payments so that these must be calculated (i) as of the beginning of the interest period, rather than as of the day following the beginning of the interest period, and (ii) using a factor expressed with at least six decimals approximated by the rounding method, rather than four decimals approximated by the rounding method.

The proposal is subject to comments and is due to be enacted shortly.

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