17 CFR 240.16c-2
§ 240.16c-2 Transactions effected in connection with a distribution.
United States · 17 CFR — Commodity and Securities Exchanges · Status: effective
Cite this
- Citation
- 17 CFR 240.16c-2, § 240.16c-2 Transactions effected in connection with a distribution, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/69333
- Permanent ID
ys:prov:69333@1- SHA-256
1baf23df2ce47aafc82e898fc63901ea6978a2c50ef93b8002f1d9195d4a5c11
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Full text
Any transaction shall be exempt from section 16(c) of the Act to the extent necessary to render lawful any sale made by or on behalf of a dealer in connection with a distribution of a substantial block of securities, where the sale is represented by an over-allotment in which the dealer is participating as a member of an underwriting group, or the dealer or a person acting on the dealer's behalf intends in good faith to offset such sale with a security to be acquired by or on behalf of the dealer as a participant in an underwriting, selling, or soliciting-dealer group of which the dealer is a member at the time of the sale, whether or not the security to be acquired is subject to a prior offering to existing security holders or some other class of persons.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.