CHILE: Santiago Exchange Submits News Rules to SVS

Thursday April 14 2016

On 8th April 2016, Santiago Exchanges approved Statues were submitted to the Superintendencia de Valores y Seguros – SVS´ for analysis and approval.
The proposal of new Statutes voted in an extraordinary shareholders meeting contemplates –among others – the elimination of the requirement of having a Santiago Exchange share to participate as a Brokerage Member Firm. Likewise, it incorporates an ownership concentration limit of the Santiago Exchange, so that no person or legal entity, individually or jointly, can hold more than 25% ownership of the Company.

Additionally, a Corporate Governance reform was approved, with the obligation that at least three of the eleven directors are independent, with no affiliation to any brokerage house or the Exchange itself, as well as the creation of a Users’ Committee with the participation of issuers, investors and Brokerage Houses representatives, and the obligation of having its own Corporate Governance Code.

As part of the demutualization process, the shareholders approved to increase the number of outstanding shares of the Exchange, turning the original 48 shares into 48,000,000 shares. Therefore, the equity swap of 1,000,000 shares for each original share of Santiago Exchange is aimed also at stimulating the liquidity of the Company’s shares in the market. As soon as the SVS approves the new Statutes, the Exchange will proceed with the equity swap and the Board of Directors will proceed with the contracts that enable shareholders to swap each share into one million shares.

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