This is only one example of many types of operation which at first might not seem to fall under the regulations. Subject to specified exemptions, the Regulations state that a person shall be deemed to make an issue of capital who issues any securities "whether for cash or otherwise."
Thus it may not be permissible for a company, without prior consent, to place sums to reserve and then make a bonus issue to shareholders in order to capitalize reserves, even though the machinery of the new issue market is not involved in any way.
Text read from the printed page and cleaned; old type leaves the occasional error.