BUENOS AIRES Nov 29 Argentina's Senate passed a
law on Thursday to reform the country's capital markets, giving
the state more power to regulate financial deals.
President Cristina Fernandez backed the bill, which was
passed by the lower house last week. The Senate voted 43 to 19
to approve the measure.
The reform will give the securities regulator, the CNV, the
power to oversee the country's financial markets, supervised by
market entities before. The CNV will now be charged with
regulating share listings and public companies.
It will also continue exercising its authority to approve
Although Argentina is Latin America's No. 3 economy, its
capital markets are small partly due to strict capital and
currency controls, as well as high inflation.
"It is essential that we put an end to the self-regulation,"
ruling-party Senator Anibal Fernandez, who previously served as
the president's cabinet chief, said during the debate.
Government officials say the reform aims to attract more
investment from companies and individuals to bolster the
country's capital markets and expand financing options for
It loosens requirements for operating in the market and
simplifies corporate debt authorizations, eliminating the
requirement that issues be vetted by ratings agencies - which
Argentina accuses of being in cahoots with speculators.
Argentina is listed as a frontier market by equity index
provider MSCI and it could have that status stripped if the
government continues intervening in the markets. In May, it
seized control of energy company YPF from Spain's
Repsol, causing a diplomatic row.