SAO PAULO, Sept 29 (Reuters) - Brazil’s main economic policy body eased on Monday some rules governing foreign investment on local depositary receipts, in a move aimed at kick starting a largely dormant market.
The Monetary Policy Council decided that non-resident investors’ purchases of Brazilian depositary receipts, known as BDRs, could also be made from a local Brazilian account and not only from a foreign account. In a statement, the council, known as CMN, will allow BDRs to be linked to financial assets other than stocks exclusively.
BDRs were created almost a decade ago to attract foreign investment into Brazil’s equity market and to allow companies with domiciles outside Brazil to list their shares in the São Paulo Stock Exchange. Yet the number of issuers has turned out to fall short of expectations at the time. (Reporting by Guillermo Parra-Bernal; Editing by Chris Reese)