Municipal Securities Investor Protection Act of 1996

Municipal Securities Investor Protection Act of 1996 - Amends the Securities Act of 1933 and the Securities Exchange Act of 1934 to provide that a municipal issuer shall only be exempt from its provisions if such issuer: (1) pledges its full faith and credit or taxing power to make timely payments of principal and interest; (2) offers or sells such securities in a minimum single transaction amount of under $1 billion; or (3) offers or sells such securities in a series of related transactions, but does not reasonably anticipate that the aggregate principal amount of the series will exceed $1 billion at the time of such offer or sale.

Amends the Securities Exchange Act of 1934 to provide that the duty to file supplementary and periodic information by non-exempt municipal securities may not be suspended by reason of the number of security holders of record of that class of securities.

Authorizes the Securities and Exchange Commission to require non- exempt municipal security issuers to file requisite documents before the sale of such securities.

Amends the Trust Indenture Act of 1939 to make conforming amendments.