Argentina: Private offering of negotiable securities is regulated

In brief

On 18 September 2024, the National Securities Commission issued General Resolution No. 1016/2024 regulating the private offering of marketable securities under Capital Markets Act No. 26,831.


Contents

In depth

The main highlights of General Resolution No. 1016/2024 ("Resolution") are the following:

  1. Provides a definition of "private offering of negotiable securities," establishing that it must comply with certain conditions related to the number and type of investors, dissemination channels and information to be provided to investors
  2. Establishes prohibited and permitted means of dissemination in the context of a private offering of negotiable securities
  3. Prohibits the resale of marketable securities offered under the private offering regime for a period of three to six months, depending on whether the resale will be to qualified investors or not
  4. Establishes a safe harbor for private offerings of marketable securities, private offerings of marketable securities to employees and offerings of marketable securities without sufficient contact with the Republic of Argentina to the extent that certain requirements are met
  5. Indicates that noncompliance with the safe harbor provisions will not automatically cause the private or offshore offering to be an irregular public offering, but must be evaluated on a case-by-case basis
  6. Clearing and Settlement Agents (ALYCs), Trading Agents (ANs), Global Investment Advisors (AAGI) and Producing Agents (APs) are allowed to participate in the private offering of negotiable securities

The Resolution became effective on 19 September 2024.

Spanish version

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Jeronimo Argonz, Associate, has contributed to this legal update.


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