20 December 2007
On December 6, 2007, the Securities and Exchange Commission (SEC) issued its final revised regulations amending Rule 144 and Rule 145 under the Securities Act of 1933, as amended (the “Securities Act”). The new rules shorten the holding period for restricted securities of reporting entities to six months, simplify the conditions for non-affiliates of reporting entities to freely resell restricted securities after satisfying the six-month hold period, and allow non-affiliates of reporting entities to freely resell their securities without any other Rule 144 requirements after a one-year hold period. In addition, the new rules simplify the resale of restricted debt securities. The effective date of these new rules is February 15, 2008. This securities update provides a summary of the revised Rule 144 and Rule 145.