Covered Securities under National Securities Markets Improvement Act Summary


Summary

The National Securities Markets Improvement Act of 1996 (NSMIA) defined the limits of state regulatory authority over securities offerings in the national securities market. Prior to NSMIA, many securities offerings had to comply with the registration and qualification provisions of state securities laws, known as “Blue Sky Laws.” NSMIA preempts states from applying registration and qualification requirements of Blue Sky Laws to securities offerings and transactions that are national in character, or otherwise fall in the scope of NSMIA’s “covered securities.” The following is a brief summary of covered securities under NSMIA.