Considerations
Title I: Fundamental Norms
	Chapter I
		Basic Provisions
		Object  and Scope of the Law Public Offering Definitions
	Chapter II
		Public Securities Database
		Creation of the Public Securities Database Registration of Issuers and Securities Incorporation by public subscription Registration of foreign securities Registration of stock Exchanges and Securities Depositories Registration of Brokerage Houses Registration of External Auditors and Classifiers of Risk Registration of Administrators Update of the Registration Suspension of Transactions of a Security Cancellation of the Registration of a Security Suspension or Cancellation of the Registration of Brokerage Houses Disclosures by the Superintendence Powers of Investigation and Inspection
Title II:Stock Exchanges And Stock Operations
	Chapter I
		Stock Exchanges
		Legal Nature Minimum Capital Prohibitions Incorporation Authorization of operations Administration and Functions Requisites to be director or administrator of stock exchanges Inabilities to be director or administrator of a stock exchange Regulation Registration of issuers and securities Reserved Information Qualification and registration of Brokerage Houses Refusal to sale a post Suspension and cancellation of transactions of securities Suspension or cancellation of Brokerage Houses Appeals before the superintendence Disclosure of information Limitation of activities Deficiencies of Capital Causal of liquidation
	Chapter II
		Stock Operations
	Chapter III
		Settlement of Stock Operations
		Settlement of transactions of securities Attachment of securities Traded in a Stock Exchange Executive Power Arbitration
Title III: Brokerage Houses
	Chapter I
		Incorporation, Legal Nature And Minimum Capital
		Prohibitions Requirements to be Director of Brokerage Houses Inabilities to be Director or Administrator of Brokerage Houses Operations Broker Agents Margins of Indebtedness Obligations and Responsabilities.
Title IV: Securities and Their Trading
	Chapter I
		Characteristics of Securities Tradable in a Stock Exchange
		Dematerialization Primary Market Secondary Market
Title V: Deposit and Custody of Securities
	Chapter I
		Incorporation, Legal Nature and Minimum Capital
		Authorization Requeriments Lending of Services Endorsement in Administration Regulations, Manuals and Disclosures
Title VI: On Auditors and Clasification of Risks
	Chapter I
		External Auditors
		Obligation of Registering Independence from Audited Corporations Exercise of the audit Powers and Obligations Accounting principles and norms
	Chapter II
		Classifiers of Risk
		Incorporation and Registration Requeriments to Register Council of Classification of Risk Requeriments to be Director Independence and Exercise Responsibilities
Title VII: General Norms
	Chapter I
		General Provisions
		Commissions Contribution to the Cost of Inspection Constant value of capitals Instruments and Central American Documents
	Chapter II
		Prohibitions, Responsibilities and Sactions
		Forbidden Activities Prohibition to raise funds from the public without autorization Responsibilities Sanctions Appeal
	Chapter III
		Transitory Provisions
		Requirements Excesses to the Limits of Investment Sanctions

Decreen No.  694

THE LEGISLATURE OF THE REPUBLIC OF EL SALVADOR

CONSIDERING

1. That by Legislative Decree N0 809, of February 16, 1994, published in the Official Newspaper N0. 73-bis, vol.e 323, of April 21, 1994, the Law of the Securities Market was issued.
2. That having in consideration the financial difficulties that face several of the participants of this market to fulfill with one provision of the Law of the Securities Market, specifically the one that refers to the constant value of capital, it is necessary to issue a Section of transitory character that solves this problem.

THEREFORE

In use of constitutional powers and to upon initiative of the President of the Republic, by means of the Minister of Economy, and the Representative Carmen Elena Calderón de Escalón,

It DECREES, the following:

Transition Provision to the Law of the Securities Market

Sect. 1.- The update of the amount of minimum capitals of foundation referred to by Section '98, will become effective starting from the month of April of 1998, except for additional capital stock of the houses that carry out operations of portfolio management contemplated in paragraph a) of Sect. 113, el which must be adjusted according to what is specified in the indicated sect. 98.

Sect. 2.- The present Decree will enter in validity the day of its publication in the Official Newspaper.

GIVEN IN THE BLUE ROOM OF THE LEGISLATIVE PALACE: San Salvador, twenty fifth of April of one thousand nine hundred ninety six.

PRESIDENTIAL HOUSE: San Salvador, sixth of May of one thousand nine hundred ninety six.

LET IT BE PUBLISHED,

ARMANDO CALDERON SOL
President of the Republic.

EDUARDO ZABLAH TOUCHE H.,
Minister of Economy.

* Published in the Official Newspaper #90, T. 331, of May 17, 1996.

TRANSITION (2)

Sect.44 regulations, instructions, resolutions and other agreements issued by the Superintendence of the Financial System, concening the stock market will maintain their validity in all that is not opposed to this law, while they are not derogated or modified.

Sect.45 Insert between Sects. 119 and 120 the following section:

Sect.119-A The president of the Republic will decree the Regulation of the Law of the Securities Market.

TRANSITION (3)

Sect. 7.- During a term that will end on March 31, 1999, the requirement consisting of the obligatory classification of risk for securities registered in A stock exchange and contemplated in paragraph k) of Sect. 9 of the Law of the securities market and reformed by this decree, won't be demanded from Issuers of securities who will submit their issues voluntarily for classification of risk during this period.

Sect. 8.- It is derogated Sect. 43 of Legislative Decree Not. 925 of December 19, 1996, published in the Official Newspaper No. 25, Vol. 334, of February 7, 1996.

Sect. 9.- Brokerage Houses that to the date of validity of the present Decree are managing portfolios, and don't comply with the limits to the percentages of investments and capital pointed out in this Decree and the norms issued by the Superintendence, will have a term of up to 360 days to comply, starting from the validity of this Decree; whenever they give to the Superintendence a compliance program during the fifteen days following the date of validity of the present Decree. The reduction of the excesses of investments of the different portfolios, will be made, at least, by twenty-five percent quarterly, and should be complete during the indicated term.

Brokerage Houses that don't comply with the limits and with the reduction plan must suspend their operations of portfolio management until their regularization is complet, without prejudice of the corresponding sanctions.

Sect. 10.- Brokerage Houses that to the date of validity of the present Decree, don't comply the limit of repurchase agreements specified in this Decree, must, during a period of thirty days starting from its validity, turn into own the surpluses over the established limit. Securities that are acquired as consequence of this operation, may be sold later to the diverse options of the managed portfolio, whenever the operation is carried out by means of a stock exchange.

Brokerage Houses that turn into own the surpluses over the established limit in repurchase agreements for portfolios, will have three hundred sixty days starting from the validity of this Decree, to adjust to the established levels of indebtedness; whenever they give to the Superintendence a compliance program during the fifteen days following the date of validity of the present Decree. The reduction of the surpluses at the established levels of indebtedness, will be made, at least, by twenty-five percent quarterly, and should be complete before the end of the indicated term.

Sect.11. - The provisions contained in the present Decree will be of no effect when the special law that regulates these operations is promulgated.