National Securities Markets Improvement Act - NSMIA
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Definition: National Securities Markets Improvement Act - NSMIA
National Securities Markets Improvement Act- Nsmia passed in 1996 is an amendment to US Federal Securities Law. This law was mainly aimed at modifying and streamlining the process of registering and offering new issues of securities. This new law was mainly aimed to promote efficiency and to increase the investments in securities.
This amendment also brought changes in Investment company act of 1940 to protect investors and to promote more efficient management of mutual funds. It also provided less burdensome and more effective regulations between central and state government. Thus NSMIA was aimed to design a centrally imposed set of rules managed by federal government rather than having rules and regulations specific to individual state.