SEC Proposes Significant Changes to Rule 144

The SEC is proposing major changes to Rule 144 under the Securities Act of 1933. Most significantly, the SEC proposes shortening from one year to six months the minimum holding period for resales of "restricted securities" of "reporting companies." It also proposes that restricted securities of issuers that are not reporting companies would continue to be subject to the current one-year holding period. After one year, all resale restrictions would end for non-affiliates of both reporting and non-reporting companies.