what is section 17a

Section 17A is a provision of the Securities Exchange Act of 1934 that regulates transfer agents and contains requirements for registered transfer agents relating to, among other things, processing securities transfers, safekeeping of investor and issuer funds and securities, and maintaining records of investor ownership. Section 17A(c)(1) of the Act provides that the appropriate regulatory agency, by rule or by order, upon its own motion or upon application, may conditionally or unconditionally exempt any person or security or class of person or securities from any provision of that section or any rule or regulation prescribed under Section 17A of the Act. In addition, Section 17(a) of the Securities Act of 1933 prohibits companies, their executives, and others from engaging in fraudulent contact that can lead to civil securities fraud litigation in some jurisdictions. However, this section is not related to the other sections mentioned above.