On March 26th, 2024, a decree was published in the Official Gazette of the Federation (“Decree”) which aimed to reform, repeal and add several articles to: (i) the General Law of Securities and Credit Operations; and (ii) the General Law on Credit Organizations and Auxiliary Credit Activities.

Among other issues, said amendment to the General Law of Securities and Credit Operations is meant to recognize the possibility for securities (e.g.: share certificates, promissory notes, and cheques). to be issued, subscribed, guaranteed, transferred, endorsed and delivered through digital means (“Títulos de Crédito Electrónicos”). For this purpose, it is important to note the following:

• Electronic Securities will have the same validity as written securities, as long as the information in them remains whole and unchanged and can be looked up in the optical or electronic digital mean by which it was issued (the "Information System”). 

• Any change in the communication, storage, presentation, or circulation of Electronic Securities must be recorded in the Information System.  

• Similarly, the endorsement of Electronic Securities must be done through the Information System, guaranteeing the link between said endorsement and the Electronic Security in question.

• The authenticity of the Electronic Security’s last holder, as well as its existence and circulation, must be verified in the Information System.

On the other hand, the amendment to the General Law on Credit Organizations and Auxiliary Credit Activities aims to, among other things, oversee that the issuance of deposit certificates by the General Deposit Warehouses is made only through electronic means.

In addition, the figure of pledge bonds was eliminated, allowing the possibility of incorporating them in the same deposit certificate for the constitution of pledge credits on the assets that are the deposit certificate's object.

In accordance with the first transitory article of the Decree, the reforms entered into force on March 27th, 2024.