Novo Mercado is a listing segment designed for shares issued by companies that voluntarily undertake to abide by corporate governance practices and transparency requirements in additional to those already requested by the Brazilian Law and CVM (Brazilian Securities and Exchange Commission)

The admission to Novo Mercado implies the compliance with corporate rules, known as "good practices of corporate governance", which are more rigid than those required by the current legislation in Brazil.

These rules, consolidated in the Novo Mercado Listing Rules, increase shareholder's rights and enhance the quality of information commonly disclosed by companies. Additionally, the Market Arbitration Panel for conflict resolution between investors and companies offers a safer, faster and specialized alternative to investors.

The main innovation of Novo Mercado concerns the capital stock, which must be solely represented by common shares (voting shares). Among others additional obligation, publicly-held companies listed on Novo Mercado have to comply with the following practices of corporate governance:

• Maintenance of a minimum free float, equivalent to 25% of the capital stock;
• Detail and include additional information in the quarterly information
• Make available the annual financial statements in the English language and based on the internationally accepted accounting principles.
• Establishment of a two-year unified mandate for the entire Board of Directors, which must have five members at least, of which at least 20% shall be independent members, as defined in the Novo Mercado Listing Rules.