Mexico targets equity issues with securities reforms

Author: | Published: 1 May 2005
Mexico City: more attractive to equity issuers?

Mexico's equities markets should receive a welcome boost next year with the introduction to Congress last month of extensive corporate and securities reform proposals.

The reforms encompass a wide range of measures affecting corporate governance practices and securities listing issues. The intention is both to attract foreign investors by increasing confidence in Mexican companies' governance, and to persuade more domestic corporations to list their shares publicly.

Investors and lawyers have broadly welcomed the proposals. "There will be more certainty for investors, more clarity," says Juan Manuel González of White & Case in Mexico City.

The reforms codify many of the piecemeal changes to securities and corporate regulation introduced since 2001, when new regulations designed to strengthen the rules on tender offers and improve the rights of minority shareholders were put...