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.