SEC Proposes Amendments to Rule 144 and Form 144

The SEC has issued a proposed rule, Rule 144 Holding Period and Form 144 Filings. The proposed rule would amend Rule 144 of the Securities Act of 1933 by eliminating the “tacking” for securities that are “acquired upon the conversion or exchange of the market-adjustable securities of an issuer that does not have a class of securities listed, or approved to be listed, on a national securities exchange.” In addition, the proposal would “mandate electronic filing of Form 144, eliminate the requirement to file a Form 144 with respect to sales of securities issued by companies that are not subject to Exchange Act reporting, and amend the Form 144 filing deadline to coincide with the Form 4 filing deadline.”

For more information, see the press release as well as statement from SEC Commissioner Elad L. Roisman on the SEC’s Web site.