Page:United States Statutes at Large Volume 104 Part 1.djvu/990

 104 STAT. 956 PUBLIC LAW 101-429—OCT. 15, 1990 "(C) except as provided in subsection (c), provide bid and ask quotations of participating brokers or dealers, or comparably accurate and reliable pricing information, which shall constitute firm bids or offers for at least such minimum numbers of shares or minimum dollar amounts as the Commission and the registered securities association or national securities exchange shall require; and "(D) provide for the reporting of the volume of penny stock transactions, including last sale reporting, when the volume reaches appropriate levels that the Commission shall specify by rule or order. "(c) ExEMPnvE AUTHORITY.—The Commission may, by rule or order, grant such exemptions, in whole or in part, conditionally or unconditionally, to any penny stock or class of penny stocks from the requirements of subsection (b) as the Commission determines to be consistent with the public interest, the protection of investors, and the maintenance of fair and orderly markets. "(d) COMMISSION REPORTING REQUIREMENTS.— The Commission shall, in each of the first 5 annual reports (under section 23(b)(l) of ^ this title) submitted more than 12 months after the date of enactment of this section, include a description of the status of the penny stock automated quotation system or systems required by subsection (b). Such description shall include— "(1) a review of the development, implementation, and progress of the project, including achievement of significant milestones and current project schedule; and "(2) a review of the activities of registered securities associations and national securities exchanges in the development of the system.". SEC. 507. VOIDABILITY OF CONTRACTS IN VIOLATION OF SECTION 15(c)(2). Section 29(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78cc(b)) is amended— (1) in clause (A), by striking "paragraph (2) or (3)" and inserting "paragraph (3)"; (2) in clause (B), by striking "paragraph (1)" and inserting "paragraph (1) or (2)"; and (3) by adding at the end thereof the following new sentence: "The Commission may, in a rule or regulation prescribed pursuant to such paragraph (2) of such section 15(c), designate such rule or regulation, or portion thereof, as a rule or regulation, or portion thereof, a contract in violation of which shall not be void by reason of this subsection.". SEC. 508. RESTRICTIONS ON BLANK CHECK OFFERINGS. Section 7 of the Securities Act of 1933 (15 U.S.C. 77g) is amended— (1) by inserting "(a)" after "SEC. 7."; and (2) by adding at the end thereof the following new subsection: "(b)(1) The Commission shall prescribe special rules with respect to registration statements filed by any issuer that is a blank check company. Such rules may, as the Commission determines necessary or appropriate in the public interest or for the protection of investors— "(A) require such issuers to provide timely disclosure, prior to or after such statement becomes effective under section 8, of (i) information regarding the company to be acquired and the specific application of the proceeds of the offering, or (ii) addi-

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