Issue: May an officer of an incorporated company be exempt from licensing requirements for sale of the company’s debenture bonds under South Dakota’s blue sky law?
| Area of Law: | Corporate & Securities |
| Keywords: | Broker-dealer; Registration requirements; Blue sky laws |
| Jurisdiction: | South Dakota |
| Cited Cases: | None |
| Cited Statutes: | S.D. Codified Laws § 47-31B-401; S.D. Codified Laws § 47-31B-401(b)(1)(A) |
| Date: | 07/01/2012 |
As a general matter, in order to lawfully transact business as a broker-dealer in South Dakota, a person must either register under South Dakota’s securities law or be exempt from registration. S.D. Codified Laws § 47-31B-401.
One of the exemptions from registration includes “[a] broker-dealer without a place of business in [South Dakota] if its only transactions effected in [South Dakota] are with (A) The issuer of the securities involved in the transactions.…” Id., § 47-31B-401(b)(1)(A).
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