The Capital Market: Normalisation and Development of Financial Intermediaries

  • Francis A. Lees
  • James M. Botts
  • Rubens Penha Cysne


One can view the development of Brazilian capital markets as encompassing four specific but related developments. In a broad sense all four are tied together, and in various ways contributed to the deepening of the financial markets. These four specific developments include:
  1. 1.
    • Legislation of 1964–5

    • Legislation of 1976–7

  2. 2.

    Development of the stock market

  3. 3.
    Promotion of capital market institutions
    • Fiscal incentive funds

    • Pension funds

    • Mutual funds

  4. 4.
    Growth of venture capital activities
    • Debt conversion programme

    • Privatisation programme

    • Encouragement of special venture capital vehicles

We discuss items 1 and 3 primarily in this chapter. Item 2 is discussed in the following chapter. In part we have outlined the activities of short-term mutual funds in Chapter 8.


Capital Market Stock Exchange Mutual Fund Pension Fund Audit Committee 
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  1. 1.
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  2. 2.
    David M. Trubek, Law, Planning and the Development of the Brazilian Capital Market: A Study of Law in Economic Change, bulletin of New York University, Graduate School of Business Administration, April 1971, pp. 11 and 20–2.Google Scholar
  3. 5.
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  7. 40.
    In 1984 the total portfolio value of closed and open pension funds in Brazil was US$2.6 billion, indicating a three-year growth (in dollars) of 270 per cent. See Coopers & Lybrand, Profile of Banking and Finance in Brazil, 1986, p. 36.Google Scholar
  8. 43.
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Copyright information

© Francis A. Lees, James M. Botts and Rubens Penha Cysne 1990

Authors and Affiliations

  • Francis A. Lees
    • 1
  • James M. Botts
    • 2
  • Rubens Penha Cysne
    • 3
  1. 1.St John’s UniversityNew YorkUSA
  2. 2.Coopers & LybrandSão PauloBrazil
  3. 3.Getulio Vargas FoundationRio de JaneiroBrazil

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