by Shaiane Tassi
The capital market plays a fundamental role in the economy by enabling the financing of government and business activities, fostering productive expansion, and directly contributing to the strengthening of economic development.
Recent data from the Brazilian Association of Financial and Capital Markets Entities (ANBIMA) indicates that, between January and October 2024, companies raised R$ 633.6 billion in the capital market, the highest volume ever recorded for this period in the historical series that began in 2012. Among the main financial instruments responsible for this result are shares traded on the stock exchange (B3) and debt securities such as debentures, Real Estate Receivables Certificates (CRI), Agribusiness Receivables Certificates (CRA), and investment funds.
Due to its high complexity, the integrity and efficiency of the capital market depend on the adoption of ethical practices by all participants, including investors, borrowers, financial institutions, and auditing firms, as well as assertive regulation aimed at curbing abuses and the effective action of regulatory bodies.
The Brazilian legislation applicable to the capital market is robust and aimed at promoting the reliability, safety, and transparency of operations. The main regulatory body in the country is the Securities and Exchange Commission (CVM), whose function is to oversee, regulate, and develop the securities market. Its activities are complemented by entities such as the Central Bank, which supervises foreign exchange and credit markets, ensuring the safety and transparency of operations.
Irregular practices, such as market manipulation, insider trading, and fraudulent emissions, can lead to independent accountability in administrative, civil, and criminal spheres, each governed by its own rules and applied autonomously by the competent bodies and institutions.
In the administrative sphere, as per the provisions of Law No. 6,385/1976, the CVM can impose fines, suspensions, and even prohibit agents from acting in the market. In the civil sphere, those involved may be required to repair damages caused to investors or third parties, as per Law No. 7,913/1989. In the criminal sphere, Laws No. 6,385/1976 and No. 7,492/1986 establish imprisonment and fines for illegal conduct.
An emblematic example of the actions of regulatory bodies was the case of Mundial S/A, known as the “Alicate Bubble.” Between 2010 and 2011, the company would have manipulated the price of its shares through artificial transactions, such as the use of robots for minimal trades and the dissemination of inconsistent information regarding its real financial situation. The CVM identified these suspicious operations, initiating an investigation that culminated in 2016 with the first criminal conviction for market manipulation in Brazil. The case also led to a conviction within the regulatory body itself. The decisions in the case were seen as a milestone in the application of legislation designed to protect the integrity of the capital market.
In Brazil, a growing and continuous improvement has been observed in the mechanisms for controlling and overseeing the sector, as well as an expansion of cooperation between regulatory and investigative bodies — essential measures to protect the capital market and promote an ethical and secure business environment in the country.
Beyond the actions of regulatory bodies, the construction of a solid and trustworthy capital market requires strengthening corporate compliance practices, with effective internal policies for preventing illegal conduct, mitigating risks, and promoting transparency. These joint efforts between regulators and market participants are crucial for ensuring an ethical and secure business environment capable of attracting investments and driving economic growth.
