SEC Announces Investment Company Act Release No. 35475 for Marqeta, Inc.

The Securities and Exchange Commission (SEC) has issued a Notice of application for an order under Section 3(b)(2) of the Securities Act of 1933. This application seeks to exempt certain amounts of shares from registration under the Securities Act.

The Section 3(b)(2) exemption allows a business development company to issue and sell securities without having to register them with the SEC. This exemption is granted if certain conditions are met, including that the company invests at least 70% of its assets in securities of specified types of companies.

Business development companies are a type of closed-end investment company that invests in small and developing companies. These companies provide capital and operational assistance to help these businesses grow. The exemption under Section 3(b)(2) is designed to facilitate the raising of capital by these companies without the need for full registration of their securities.

In the Notice issued by the SEC, the Commission is seeking comments on the application for this exemption. Comments are invited from interested parties, including investors, industry representatives, and other stakeholders. These comments will help the Commission in its decision-making process regarding the application.

The Commission is responsible for overseeing the securities industry and protecting investors. In considering applications for exemptions like the one under Section 3(b)(2), the SEC must ensure that the interests of investors are safeguarded while also promoting capital formation and market efficiency.

The Section 3(b)(2) exemption is just one of many provisions under the Securities Act of 1933 that allow for certain securities to be exempt from registration. These exemptions help to streamline the process of raising capital for companies while still maintaining investor protections.

Overall, the Notice issued by the SEC regarding the application for an order under Section 3(b)(2) highlights the Commission’s role in regulating the securities industry and balancing the needs of companies and investors. Interested parties are encouraged to provide comments on the application to help the SEC make an informed decision on the exemption.