Securities Market Law (No.19-00)

Dominican Republic

(Spanish) (Enacted in 2000)

The securities Market Law was promulgated in the Dominican Republic on May 2000, in order to count with an adequate regulatory framework to regulate the activities of the participants in the stock markets and achieve better economic development with a sound, efficient and transparent market. This Law is intended to revolutionize the Dominican financial sector, as is stated in the clauses of Law 19-00 itself, “to adequately promote the stock market it is necessary to have a generic framework to regulate public supply, issuance and issuers of negotiable instruments in order to promote development of an organized, efficient and transparent market”. In that sense, Law 19-00 is the core of the legal framework applicable to the stock market and its products. To that effect, in the definition of its scope of application, Law 19-00 states that it involves public offering of securities, both in local as well as foreign currency, its issuers, commodity exchange, as well as every individual or corporation, local or foreign in the stock market.

Regarding the structure of Law 19-00 it comprises seven titles. That is:

(i)             General Provisions;

(ii)           (ii) Superintendence of Securities;

(iii)          (iii) Securities Market Participants;

(iv)          (iv) Violations and Sanctions;

(v)           (v) Fiscal Treatment;

(vi)          (vi) Temporary Provisions;

(vii)        (vii) Regulations, Modifications and Repeals.