When, What, Why & How to e-file Form 144 with SEC

About Form 144

Form 144 is a document issued by the Securities and Exchange Commission (SEC) that outlines the notice for the proposed sale of securities. This form is typically filed with the SEC by an executive officer, director, or an affiliate of the company. This stipulation falls under Rule 144 of the Securities Act, published in 1933. Rule 144 is a regulation enforced by the SEC to set guidelines about the sale or resale of restricted, unregistered, or controlled securities.

On June 02, 2022, the SEC adopted rule amendments that state that entities are expected to file Form 144 using the SEC’s EDGAR system rather than the traditional paper filing. The SEC has made provisions for a smooth transition period. The compliance date for filers to submit their forms electronically is April 13, 2023.

e-Filing Form 144

Form 144 is filed when placing an order to sell that company’s share or stock. The stock can be sold during any three-month timeframe in which the sale surpasses 5,000 shares or units. In another scenario, one can place an order to sell the stock when the aggregate sale price exceeds $50,000.

The parties filing Form 144 must have a bona fide intention to sell the securities after filing with the SEC, preferably within a reasonable time frame. All filers must register the securities they intend to sell under Section 5 of the Securities Act of 1933, as the sales covered under Form 144 are very close to the interests of the company that issues it.

Account on EDGAR system

For any party to be able to submit their Form 144 electronically, they must have an account on the SEC’s EDGAR system. If they do not have an account, they have to apply for it at the earliest. If one has forgotten the access codes to their EDGAR account, they can generate a new or a replacement access code on SEC’s website. The reporting person should have the EDGAR Account number (CIK) and CIK Confirmation Code (CCC) readily available with themselves to file Form 144 electronically.

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