SEC Toughens Stance On PIPEs deals

Law360, New York (January 26, 2007, 12:00 AM EST) -- Concern over private investment in public equity (PIPEs) transactions has led the U.S. Security and Exchange Commission to take a new approach to monitoring and regulating the deals, according to a senior SEC staffer.

Shelley Parratt, the deputy director of the SEC’s corporate finance arm, outlined the SEC’s new plan at the Securities Regulation Institute conference.

Parratt said that the SEC will look to limit PIPEs transactions by prohibiting deals in which companies attempt to register a number of shares that exceeds one-third of the total...
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