New Reverse Merger Rules Aim To Shield Investors

Law360, New York (November 10, 2011, 7:27 PM EST) -- Tighter reverse merger listing standards approved by the U.S. Securities and Exchange Commission on Wednesday won't block these deals outright but should help save some investors from getting hoodwinked like those caught up in the recent Chinese reverse merger scandal, attorneys say.

The rules, proposed by the New York Stock Exchange LLC, Nasdaq Stock Market LLC and NYSE Amex, will make it more difficult for companies, particularly those based in foreign jurisdictions, to list on U.S. exchanges using the reverse merger process.

The rules are intended...
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