Regulation D

Regulation D

There are two Regulation Ds. First, it refers to the exemption from the Securities Act of 1933 for Private Placements. These placements are exempt from registration and prospectus delivery requirements. Second, it refers to a Federal Reserve Board regulation that currently requires member banks to hold reserves against their net borrowings from foreign offices of other banks over a 28-day averaging period. Regulation D has been merged with Regulation M.

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Regulation D

An SEC regulation that permits some smaller companies to offer and sell securities without registering the transaction. The regulation applies to companies that seek to raise less than $1 million in a 12-month period and to companies that raise up to $5 million so long as the securities are sold to accredited investors or to 35 or fewer individuals.

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Regulation D. Both the Securities and Exchange Commission (SEC) and the Federal Reserve have regulations known as Regulation D.

The SEC's Regulation D specifies which securities can be sold within the United States without having to be registered with the Commission.

Among the other restrictions, these securities can be made available only to accredited investors -- individuals with a net worth of at least $1 million or an annual income of $200,000 or more, and institutions with assets of $5 million or more.

The Federal Reserve's Regulation D sets the requirements for depositary institutions, including the amount of cash the bank must hold in reserve and the number of transfers or withdrawals permitted for a savings account -- which is six transfers every four week cycle with no more than three by check or electronic payment.