Connecticut Administrative Code
Title 38a - Insurance Department
124 - Insider Trading of Domestic Stock Insurance Company Equity Securities
Section 38a-124-11 - Exemption from section 38a-119 of certain sales of a subscription right involving the acquisition of similar securities

Universal Citation: CT Reg of State Agencies 38a-124-11

Current through March 14, 2024

(a) Any sale of a subscription right to acquire any subject security of the same issuer shall be exempt from the provisions of section 38a-119 of the 1969 supplement to the general statutes to the extent prescribed in this section, as not comprehended within the purpose of said section 38a-119 if:

(1) Such subscription right is acquired, directly or indirectly, from the issuer without the payment of consideration;

(2) such subscription right by its terms expires within forty-five days after the issuance thereof;

(3) such subscription right by its terms is issued on a pro-rata basis to all holders of the beneficiary security of the issuer; and

(4) a registration statement under the Securities Act of 1933, as amended, is in effect as to each subject security, or the applicable terms of any exemption from such registration have been met in respect to each subject security.

(b) As used in this section:

(1) "Subscription right" means any warrant or certificate evidencing a right to subscribe to or otherwise acquire an equity security;

(2) "beneficiary security" means a security registered pursuant to section 12 of the Securities Exchange Act, to the holders of which a subscription right is granted;

(3) "subject security" means a security which is the subject of a subscription right.

(c) Notwithstanding anything contained herein to the contrary, if a person purchases subscription rights for cash or other consideration, a sale by such person of subscription rights otherwise exempted by this section will not be so exempted to the extent of such purchase within the six-month period preceding or following such sale.

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