110 STAT. 3424 PUBLIC LAW 104-290—OCT. 11, 1996 SEC. 105. EXEMPTIVE AUTHORITY. (a) GENERAL EXEMPTIVE AUTHORITY UNDER THE SECURITIES ACT OF 1933.— Title I of the Securities Act of 1933 (15 U.S.C. 77a et seq.) is amended by adding at the end the following new section: 15 USC 77z-3. "SEC 28. GENERAL EXEMPTIVE AUTHORITY. "The Commission, by rule or regulation, may conditionally or unconditionally exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision or provisions of this title or of any rule or regulation issued under this title, to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection oi investors.". (b) GENERAL EXEMPTIVE AUTHORITY UNDER THE SECURITIES EXCHANGE ACT OF 1934.—Title I of the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended by adding at the end the following new section: 15 USC 78mm. "SEC. 36. GENERAL EXEMPTIVE AUTHORITY. " (a) AUTHORITY. — "(1) IN GENERAL. — Except as provided in subsection (b), but notwithstanding any other provision of this title, the Commission, by rule, regulation, or order, may conditionally or unconditionally exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions, from any provision or provisions of this title or of any rule or regulation thereunder, to the extent that such exemption is necessary or appropriate in the public interest, and is consistent with the protection of investors. Regulations. "(2) PROCEDURES.— The Commission shall, by rule or regulation, determine the procedures under which an exemptive order under this section shall be granted and may, in its sole discretion, decline to entertain any application for an order of exemption under this section. "(b) LIMITATION.— The Commission may not, under this section, exempt any person, security, or transaction, or any class or classes of persons, securities, or transactions from section 15C or the rules or regulations issued thereunder or (for purposes of section 15C and the rules and regulations issued thereunder) from any definition in paragraph (42), (43), (44), or (45) of section 3(a).". SEC. 106. PROMOTION OF EFFICIENCY, COMPETITION, AND CAPITAL FORMATION. (a) SECURITIES ACT OF 1933. —Section 2 of the Securities Act of 1933 (15 U.S.C. 77b) is amended— (1) by inserting "(a) DEFINITIONS.— " after "SEC. 2."; and (2) by adding at the end the following new subsection: "(b) CONSIDERATION OF PROMOTION OF EFFICIENCY, COMPETI- TION, AND CAPITAL FORMATION.—Whenever pursuant to this title the Commission is engaged in rulemaking and is required to consider or determine whether an action is necessary or appropriate in the public interest, the Commission shall also consider, in addition to the protection of investors, whether the action will promote efficiency, competition, and capital formation.". (b) SECURITIES EXCHANGE ACT of 1934. —Section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c) is amended by adding at the end the following new subsection:
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