SEC shortens Rule 144 holding periods and loosens restrictions on resales of privately placed securities

Purpose - The purpose of this paper is to describe recent amendments to Rule 144 of the Securities Act of 1933 concerning holding periods and resale of privately placed securities.Design methodology approach - The paper describes key changes with respect to shortened holding periods, elimination of...

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Bibliographic Details
Published in:The journal of investment compliance 2008-06, Vol.9 (2), p.45-49
Main Authors: Ford Jacob, Valerie, Bursky, Daniel J, Gelfond, Stuart H, Levitt, Michael A, Tropp, Paul D, Tsaganos, Vasiliki B
Format: Article
Language:English
Subjects:
Affiliates
Amendments
Compliance
Equity
Fundholding
Investment banks
Laws, regulations and rules
Private placement
Private placements (Securities)
Regulation
Regulation of financial institutions
SEC 33
SEC registration
Securities
Securities law
Securities markets
Securities offerings
Studies
United States of America
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Summary:Purpose - The purpose of this paper is to describe recent amendments to Rule 144 of the Securities Act of 1933 concerning holding periods and resale of privately placed securities.Design methodology approach - The paper describes key changes with respect to shortened holding periods, elimination of most requirements for non-affiliates, and relaxation of requirements for sale of debt securities.Findings - The paper finds that the SEC has adopted significant amendments to Rule 144 that will increase the liquidity of privately placed securities and ease the burden on issuers caused by having to grant burdensome registration rights. The amendments shorten the holding periods before affiliates and non-affiliates may sell restricted securities and otherwise loosen restrictions on the public resale of equity and debt securities acquired in private placements.Originality value - The paper is a useful guide to rule changes written by experienced securities lawyers.
ISSN:1528-5812
1758-7476
DOI:10.1108/15285810810886180