12/2/2021, 7:23 PM (Source: TeleTrader)
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SEC makes it easier to delist foreign public companies in US

The United States Securities and Exchange Commission (SEC) unveiled on Thursday newly-approved rules that make it easier to delist foreign public companies from exchanges in the country.

The rules stipulate that the SEC may delist companies and ban them from trading if the Public Company Accounting Oversight Board (PCAOB) hasn't been able to audit them for three consecutive years. Moreover, it forces companies to disclose whether or not they are controlled or owned by any foreign governments.

SEC Chair Gary Genser (pictured) stated that the rule will affect China and Hong Kong as they are the ones that haven't been allowing officials to audit them, saying that the new rules are a "basic bargain in our securities regime" and "gets to the heart of the SEC’s mission to protect investors."

Baha Breaking the News (BBN) / OL