US SEC votes to propose rules to spur more public stock deals

WASHINGTON Wed Dec 18, 2013 11:01am EST

WASHINGTON Dec 18 (Reuters) - The U.S. Securities and Exchange Commission voted unanimously on Wednesday to propose new rules that would allow start-up companies to raise more money through public stock deals without facing costly registration requirements.

The public will get 60 days to submit feedback on the proposed rule, which is a requirement that stems from the 2012 Jumpstart Our Business Startups (JOBS) Act.

Under the plan, companies would be able to raise up to $50 million in so-called "Regulation A" stock offerings, compared with just $5 million under today's rules. Any deal above $5 million would also be exempted from oversight by state regulators.