* SEC Proposes Amendments to Short Selling Rules. On December 6th, the SEC published for comment proposed amendments to Rule 105 of Regulation M. The proposal would make it unlawful to purchase shares in a registered public offering if the purchaser has effected a short sale during the five-day period before pricing of the offering. Comments must be submitted within 60 days after the proposed amendment is published in the Federal Register, approximately February 9, 2007. Release No. 34-54888. See also Cox Statement on Proposed Amendments to Rule 105 of Regulation M (remarks of SEC Chairman Christopher Cox explaining the reasons behind the proposed rule amendment).
it means that in the 5 days prior to any registered offering if a short sale took place the person who effected the short sale cannot purchase any shares through the public offering.