To amend the Securities Exchange Act of 1934 to exclude qualified institutional buyers and institutional accredited investors when calculating holders of a security for purposes of the mandatory registration threshold under such Act, and for other purposes.
Source: Congress.gov ·
309 words in original text
What This Bill Does
This bill changes how the government counts the number of people who own a security (a financial investment like a stock) for registration purposes. When counting these owners, the bill says companies should not include qualified institutional buyers or institutional accredited investors (sophisticated, wealthy investors and large investment companies).
Who It Affects
Companies that issue securities, qualified institutional buyers (large investment firms that meet certain requirements), and institutional accredited investors (wealthy investment organizations).
Key Provisions
• The bill changes the rule that requires companies to register securities when they have a certain number of owners. It says qualified institutional buyers and institutional accredited investors should not be counted toward that number. (Sec. 1(a)(1))
• The bill makes the same exclusion apply to another part of the registration rule that also counts owners. Qualified institutional buyers and institutional accredited investors should not be counted here either. (Sec. 1(a)(2))
• The bill says that Section 36 of the Securities Exchange Act of 1934 (which gives regulators general power to change rules) cannot be used to override the changes made by this bill. (Sec. 1(b))
What Changes
Companies will exclude qualified institutional buyers and institutional accredited investors when deciding whether they must register their securities with the government.
Important Definitions
None defined in the bill text.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
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