240.15g-1—Exemptions for certain transactions.
The following transactions shall be exempt from 17 CFR 240.15g-2, CFR 240.15g-3, 17 CFR 240.15g-4, CFR 240.15g-5, and 17 CFR 240.15g-6 :
(1)
Whose commissions, commission equivalents, mark-ups, and mark-downs from transactions in penny stocks during each of the immediately preceding three months and during eleven or more of the preceding twelve months, or during the immediately preceding six months, did not exceed five percent of its total commissions, commission equivalents, mark-ups, and mark-downs from transactions in securities during those months; and
(2)
Who has not been a market maker in the penny stock that is the subject of the transaction in the immediately preceding twelve months.
Code of Federal Regulations
(b)
Transactions in which the customer is an institutional accredited investor, as defined in 17 CFR 230.501(a) (1), (2), (3), (7), or (8).
(c)
Transactions that meet the requirements of Regulation D ( 17 CFR 230.501-230.508), or transactions with an issuer not involving any public offering pursuant to section 4(2) of the Securities Act of 1933.
(d)
Transactions in which the customer is the issuer, or a director, officer, general partner, or direct or indirect beneficial owner of more than five percent of any class of equity security of the issuer, of the penny stock that is the subject of the transaction.
(f)
Any other transaction or class of transactions or persons or class of persons that, upon prior written request or upon its own motion, the Commission conditionally or unconditionally exempts by order as consistent with the public interest and the protection of investors.