Investment regulation - Argentina
There are applicable limits for foreign investments regarding media and communication sector companies under Argentine laws.
Foreign investors can invest in up to 30% of the capital and votes of an Argentine media and communications entity. Media and communication companies comprise newspapers, magazines, publishing companies, broadcasting services, production of visual and digital contents, advertising companies, and internet providers. In the particular case of broadcasting companies, no foreign individual can directly purchase stock.
Some limits are applicable on gas and energy sector companies for local and foreign investors.
The Comisión Nacional de Valores (CNV), the local SEC, published General Resolution Nr 841 on 25 May 2020.
This resolution establishes a minimum holding period of five (5) business days on securities counted from the actual settlement date of the credit in the local custodian’s safekeeping account at the central securities depository (CSD). Once the five (5) day hold is met, the investor can transfer those securities to an international central securities depositary (ICSD) or sell the securities against foreign currency in the local market.
From a custody perspective, the minimum holding period will not apply when it is related to a purchase of securities in foreign currency in the local market and a subsequent sell of securities, also executed against foreign currency in the local market, both within the same jurisdiction.
The resolution states that the Clearing and Settlement Agent (ALYC in Spanish) shall verify compliance of the holding period for each of the above-mentioned trades.
All investors will have a minimum holding period of 5 (five) business days effective on the settlement date at the local CSD, in order to be able to transfer those securities to an international central securities depository (ICSDs) or sell them versus foreign currency in the local market. The ALYC will control compliance with the holding period. This applies to both equity and fixed income instruments.
Transfer and repatriation of capital
Effective 17 December 2015, the Central Bank introduced some modifications (Communication “A” 5850 and Resolution 3/2015) on foreign exchange regulations applicable to foreign investors in Argentina. Please see the Creation Link Guide - Argentina for further information.
Clearing and settlement restrictions
On 29 December 2015, the Comision Nacional de Valores (CNV) published Resolution number 651/15 and the Central Bank of Argentina (BCRA) published Communications "A" 5861 and "A" 5864 , removing the "three business days" holding period, that local brokers had to comply with when transferring securities from a local account at Caja de Valores S.A. or CRYL to an international central depository or to the local comitente account of such international central depository.