Are Capital Markets securities granted automatic “blue-sky” exemptions?
Yes. The SEC approved a modification to Securities Act Rule 146 to designate securities listed on The NASDAQ Capital Market as “covered” securities, which makes them exempt from state “blue sky” registration requirements. The Order became effective on May 24, 2007 To view the SEC Approval Order, please click here. Please note that NASDAQ Global Select Market and NASDAQ Global Market securities are currently subject to a “blue sky” exemption contained in the Securities Act of 1933.
