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Purchases of Certain Equity Securities by the Issuer and Others

SEC · final-rule · Published 1999-09-29 · Effective 1999-10-29 · 64 FR 52428

Document

Document number
99-25252
Federal Register citation
64 FR 52428
CFR reference
17 CFR 240
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Securities and Exchange Commission
Publication date
1999-09-29
Effective date
1999-10-29
Docket
Release No. 34-41905

Abstract

The Securities and Exchange Commission (Commission) today is adopting an amendment to Rule 10b-18 (Rule) under the Securities Exchange Act of 1934 (Exchange Act). Rule 10b-18 provides a ``safe harbor'' from liability for manipulation under Sections 9(a)(2) and 10(b) of the Exchange Act, and Rule 10b-5 thereunder, when an issuer or affiliated purchaser of the issuer bids for or buys shares of its common stock in compliance with the Rule's conditions. In order to improve liquidity during severe market downturns, the amendment modifies the Rule's timing condition during the trading session immediately following a market-wide trading suspension. In particular, the safe harbor now is available to an issuer that bids for or purchases its common stock either: from the reopening of trading until the close of trading on the same day as the imposition of the market- wide trading suspension; or at the next day's opening, if the market- wide trading suspension was in effect at the scheduled close of trading. The safe harbor requires that the issuer continue to comply with the Rule 10b-18 conditions governing the manner, price and volume of market purchases of its common stock.

Source

Authoritative
Federal Register document
Machine
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