SEC Tightens Standards For Reverse Merger Listings

Law360, New York (November 9, 2011, 6:23 PM EST) -- Responding to a rash of fraud suits against Chinese companies that have listed on U.S. stock exchanges through reverse mergers, the U.S. Securities and Exchange Commission on Wednesday approved rules aimed at tightening listing standards for companies using the technique.

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 to give...
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