TY  - JOUR
AB  - Purpose– The purpose of this paper is to provide a detailed description of Amendments to Rule 105 of Regulation M adopted by the US Securities and Exchange Commission (the “SEC”) on June 20, 2007Design/methodology/approach– Presents a general overview of short sales and the purpose of Regulation M, a rule that prohibits purchases and sales of securities during specified periods close in time to public offerings of securities; and describes the Amendments, including an expansion of the prohibition under the Rule from a prohibition on “covering” to a prohibition on purchases generally and including three exceptions that pertain to “bona fide” purchases, “separate accounts,” and investment companies.Findings– The Amendments are important because: they expand the scope of the Rule's basic prohibition; they were expanded in part because SEC perceived that circumvention of the Rule was persistent; they permit notable exceptions; and they were adopted close in time to other amendments to the regulation of short sales, including elimination of the price or “tick” tests.Originality/value– Expert guidance on a recent SEC ruling by experienced securities lawyers.
VL  - 9
IS  - 1
SN  - 1528-5812
DO  - 10.1108/15285810810859298
UR  - https://doi.org/10.1108/15285810810859298
AU  - Gittleman Charles S.
AU  - Sacks Russell D.
PY  - 2008
Y1  - 2008/01/01
TI  - SEC adopts Amendments to Rule 105 of Regulation M, including important exceptions for bona fide purchases and for separate accounts
T2  - Journal of Investment Compliance
PB  - Emerald Group Publishing Limited
SP  - 30
EP  - 34
Y2  - 2024/04/19
ER  -