In 2000, the Bovespa introduced three special listing segments, known as Levels 1 and 2 of Special Corporate Governance Practices and Novo Mercado. The goal was to create a secondary market for securities issued by Brazilian publicly held companies that follow best corporate governance practices.

The listing segments are intended for the trading of shares issued by companies that voluntarily undertake to follow good corporate governance practices and comply with more stringent disclosure requirements than those already imposed by Brazilian legislation. In general, such rules expand the rights of shareholders and improve the quality of information provided to them.

In addition to the obligations imposed by the Brazilian legislation in force, Novo Mercado rules require the fulfillment of the following requirements, among others:


Holders of Aeris Energy shares are entitled to the following rights:


The Brazilian securities market is regulated by the Brazilian Securities and Exchange Commission (“CVM”), which has the authority to supervise and issue general rules on the disciplinary power and management of stock exchanges and financial institutions registered with the CVM, members of the Brazilian securities market, as well as by the National Monetary Council (“CMN”) and the Central Bank of Brazil (“BACEN”), which have powers to authorize the registration and operation of securities brokers and to regulate foreign investments and foreign exchange transactions, among other things.

The Brazilian securities market is regulated by the Brazilian Securities Act, Brazilian Corporate Law and regulations issued by the CVM, the CMN and the BACEN. These laws and regulations set out information disclosure requirements, restrictions on stock trading related to insider information and price manipulation, and the protection of minority shareholders, among other things. However, the Brazilian securities market does not have the high level of regulation and supervision seen in the U.S. securities markets.

According to Brazilian Corporate Law, a company is classified as publicly held if its securities are admitted to trading on the Brazilian securities market and as privately held if its securities are not publicly traded on the Brazilian securities market. All publicly held companies must be registered with CVM and are subject to regulatory and information disclosure requirements.

A company registered with the CVM may trade its securities on the Bovespa or on the Brazilian over-the-counter market. Companies need to apply for registration with the Bovespa and the CVM in order to have its shares listed on the Bovespa. The shares of companies listed on the Bovespa cannot be traded simultaneously on the Brazilian over-the-counter market. The shares of companies listed on the Bovespa may also be traded in private transactions, subject to several limitations.

The Brazilian over-the-counter market, organized or not, consists of trades between investors through a financial institution registered with the CVM and authorized to operate in the Brazilian capital market. No special requirements are imposed on the trading of publicly traded securities on the non-organized over-the-counter market. The CVM requires the respective intermediaries to provide notice of all trades carried out on the Brazilian over-the-counter market.

Securities trading on the Bovespa may be interrupted at the issuer’s request before the publication of a material fact. Trading may also be suspended at the initiative of the Bovespa or the CVM, based on or due to indications that the Company has provided inadequate information in relation to a material fact or has provided inadequate responses to inquiries made by the CVM or the Bovespa, among other reasons.


CVM Instruction 358 governs the use and disclosure of information on material acts or facts relating to publicly held companies, as follows: