Exempt securities are viewed as being inherently safer, principally either due to the nature of the issuer or the existence of additional regulation. They include securities issued or guaranteed by governmental entities, banks, insurance companies and public utility companies as well as securities listed on some securities exchanges or certain securities issued by not-for-profit entities or cooperative associations.
The Statute can be found here
The Regulations can be found here
It is essential to note that no exemption from registration provides an exemption from the fraud provisions provided for in NMSA58-13C-501. Selling securities is not like selling other products where the rule is simply buyer beware. There is a duty on the part of all persons selling securities not to make misrepresentations and not to omit facts that are necessary to understand the disclosures given (what many might call half-truths).