Kansas Administrative Regulations
Agency 40 - INSURANCE DEPARTMENT
Article 13 - INSIDER STOCK TRADING
Section 40-13-13 - Exemption from K.S.A. 40-265 of certain transactions effected in connection with a distribution
Universal Citation: KS Admin Regs 40-13-13
Current through Register Vol. 43, No. 39, September 26, 2024
(a) Each purchase and sale, or sale and purchase, of a security which is effected in connection with the distribution of a substantial block of securities shall be exempt from the provisions of K.S.A. 40-265 if:
(1) The person effecting the transacting buys
and sells securities in the ordinary course of business;
(2) the person is acting in good faith;
(3) the security involved in the
transaction is:
(A) Acquired with the intent
to distribute it for the insurer or other person on whose behalf it is being
offered; or
(B) purchased in good
faith by or for the account of the person initiating the transaction in order
to stabilize the market price of securities of the type being offered, or to
cover an over-allotment or other short position created by the offering, and
(4) other persons not
within the purview of
K.S.A.
40-265 participating in the offering shall be
doing so on terms at least as favorable as the person initiating the
transaction and all other persons exempted from the provisions of
K.S.A.
40-265. Bona fide payment for performing the
functions of a distributing group shall not preclude an exemption otherwise
available under this section.
(b) The exemption of a transaction pursuant to this section, with respect to the participation of one party, shall not render the transaction exempt to the extent of any other person unless that party also meets the conditions of this section.
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