<html> <head> <title>Rule 20:06:04:46 Arbitrage transactions under insider trading.</title> <META NAME="Keywords" Content="Administrative Rules 20:06:04:46"> <META NAME="Description" Content="Administrative Rules 20:06:04:46 Arbitrage transactions under insider trading."> <meta name=Generator content="Microsoft Office HTML Filter 2.0"> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Originator content="Microsoft Word 10"> <style> <!-- --> </style> </head> <body lang=EN-US> <div> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>20:06:04:46.&nbsp;&nbsp;Arbitrage transactions under insider trading.</b> A director or officer of an insurer may not effect any foreign or domestic arbitrage transaction in any equity security of that insurer, unless the director or officer includes the transaction in the statements required by SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-69">58-5-69</A> and accounts to the insurer for the profits arising from the transaction as provided in SDCL 58-5-71 to 58-5-73, inclusive, thereof. The provisions of SDCL 58-5-70 do not apply to such arbitrage transactions. The provisions of the Act do not apply to any bona fide foreign or domestic arbitrage transaction insofar as it is effected by any person other than the director or officer of the insurer.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Source:</b> 4 SDR 6, effective August 9, 1977; 12 SDR 151, 12 SDR 155, effective July 1, 1986.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>General Authority:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-77">58-5-77.</A></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Law Implemented:</b> SDCL <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=58-5-76">58-5-76.</A></p> </div> </body> </html>