Subject: Re: Prohibition Against Conflicts of Interest in Certain Securitizations File No. S7-01-23
From: Rohit Banerjee
Affiliation:

Mar. 15, 2023

To whom it may concern 


I am writing regarding the new rule which exempts reporting and registering requirements for certain “risk-mitigating hiding activities, bona fide market making and certain liquidity commitments”. 


As a household investor, this proposal is not just absurd on its face, it represents a clear moral hazard. There is absolutely no reason why any securities offerings should be exempted from the registration rules. Adding additional complexity is a surefire way to give these market participants more and more loopholes to fleece household investors, increase systemic risk, and further destabilize our markets by reducing the amount of information about securities in the market. There should not be any registration exemptions period. It is immaterial if the sales are to accredited investors because all offered securities can affect existing securities which are traded by household investors - therefore, all information should be public. 


I thank you for your time and consideration in reading this email. 


Best 
Rohit Banerjee