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Definition: Intrastate Offering
Generally in the US, a security that is issued has to meet the regulatory guidelines that are issued by The Security and Exchange Commission (SEC). These issues can be subscribed by the eligible investors all across the country. However, there can be a case where a particular issue is only open to the eligible investors of the state in which the issuing company is registered and operating from.
As these security offerings do not concern more than one state, they do not have to fall in line with the guidelines that are issued by The Security and Exchange Commission (SEC). There is no need for these securities to even be registered under the SEC. these issues will only fall under the jurisdiction of the state in which the security has been issued. The State regulators can take action or intervene in the security issuance in case of any discrepancies found.
Certain companies prefer the intrastate offering as it is less costly in comparison to the normal issuance under SEC.