Although the secondary regulation of the Securities Market Law is one of the priorities of the Mexican financial authorities, the publication of this remains stagnant, since it is already behind the agreed time, and the growth of the Mexican stock market continues to be delayed, since “the faster the better,” said María Ariza, general director of the Institutional Stock Exchange (Biva).
It is worth noting that the drafting of the secondary regulation addresses the issues of how to define the size of candidate companies to carry out a simplified issue of shares or debt; how stock market financing will be accessed through simplified issues of debt and capital securities, since it seeks to reduce the time, cost and procedures for listing these securities, mainly.
“The secondary regulation was supposed to be issued until June, but it has been delayed due to some issues on the part of the authorities, internal discussions between the National Banking and Securities Commission (CNBV), the Bank of Mexico (BdeM), the Ministry of Finance, but the conversations are flowing. It is an issue that needs to be developed quickly and take advantage of the opportunities that Mexico has today,” explained Ariza.
Within the framework of the BIVA Grito, on the occasion of the arrival of Fibra Nova to the Institutional Stock Exchange, the director of the stock exchange entity revealed that they have been working while said regulation arrives, because with the Biva Impulsa program, which they have together with the UNAM, they already have 50 certified companies that are ready in case the secondary regulation is given soon and they could reach the markets through the figure of the simplified ones.
Afores, relevant
Retirement savings administrators (Afore) will participate in the new simplified issuance scheme. That is why Afores are the most relevant investor in Mexico. “Their participation in the stock market is crucial for success and the power to attract companies.”
Given the level of scrutiny and depth, it is understandable that the Afores participate in a certain size of investments, said Ariza, such as in companies with more than 4.5 billion pesos placed in the stock exchanges. This is due to the magnitude of the assets they manage.
He added that Mexico needs to develop a diverse layer of investment vehicles in which the Afores can base their investments.
On another note, Guillermo Medrano, CEO of Fibra Nova, explained that one of the challenges for the company is the development of infrastructure such as water, electricity, telecommunications and drainage. This is in view of the possibility of taking advantage of the nearshoring phenomenon, in places such as Chihuahua, where they have land reserves.
The speed at which investment has arrived in Mexico in recent years has been greater than the speed at which infrastructure has been built. I believe that this lag, if we start today, will probably be resolved in three or four years, said the executive.
In the same vein, he said that investment is needed, both federal and municipal, to solve the problems. And, likewise, he does not rule out that the new government will have a “new mentality” to solve them.
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– 2024-08-01 04:17:37
