Section 760 IAC 1-12-23 - Exemption from IC 27-2-10-3 of sales of securities to be acquiredAuthority: IC 27-1-3-7
Affected: IC 27-2-10-1; IC 27-2-10-3
Sec. 23.
Exemption from Section 3 [IC 27-2-10-3 ]of the Act of Sales of Securities To Be Acquired.
(a) Whenever any person is entitled, as an incident to his ownership of an issued security and without the payment of consideration, to receive another security "when issued" or "when distributed," the security to be acquired shall be exempt from the operation of Section 3 [IC 27-2-10-3 ], provided that: (1) the sale is made subject to the same conditions as those attaching to the right of acquisition, and(2) such person exercises reasonable diligence to deliver such security to the purchaser promptly after his right of acquisition matures, and(3) such person reports the sale on the appropriate form for reporting transactions by persons subject to Section 1 [IC 27-2-10-1 ]of the Act.(b) This section shall not be construed as exempting transactions involving both a sale of a security "when issued" or "when distributed" and a sale of the security by virtue of which the seller expects to receive the "when issued" or "when-distributed" security, if the two transactions combined result in a sale of more units than the aggregate of those owned by the seller plus those to be received by him pursuant to his right of acquisition.Department of Insurance; Reg 12,IV,Sec 3-3; filed Jun 7, 1966, 9:00 am: Rules and Regs. 1967, p. 112; filed Jan 6, 1970, 8:40 am: Rules and Regs. 1971, p. 181; readopted filed Sep 14, 2001, 12:22 p.m.: 25 IR 531; readopted filed Nov 27, 2007, 4:01 p.m.: 20071226-IR-760070717RFA; readopted filed November 26, 2013, 3:43 p.m.: 20131225-IR-760130479RFAReadopted filed 11/19/2019, 9:18 a.m.: 20191218-IR-760190497RFA