SEC eases deregistration for foreign issuers
30 Mar 2007
The US Securities and Exchange Commission has published new rules that make it easier for foreign companies to deregister their securities in the United States.
Under the new rules, a foreign entity may deregister if the US average daily trading volume of the securities has been no greater than 5 percent of the average daily trading volume of that class of securities on a worldwide basis for a recent 12-month period (and some other conditions are met). Under the old rules, a foreign issuer could not deregister if it has more than 300 record holders who are US residents, even if, on the basis of trading volume, there is relatively little interest in the issuer's securities among American investors. Click for:
- SEC Press Release (PDF 42k)
- New SEC Deregistration Rules (PDF 557k)
