Nasdaq has proposed a new set of improvements to initial and ongoing registration standards.
Proposals introduce enhanced requirements for few public floating companies and funds drawn during the original public bids, along with the stricter suspension and deletion procedures for companies that do not meet the continued registrations of NASDAQ.
Revised Standards include:
- A minimum market value of the $ 15 million public level, which applies to new registrations in Nasdaq according to the net income standard.
- An accelerated process for the suspension and deletion of companies with a deficiency of entries that also have market value of listed securities below $ 5 million.
- A minimum public bid of $ 25 million for new lists of companies mainly operating in China.
These actions follow the preventive review of Nasdaq’s commercial activity, particularly emerging standards associated with possible US and Homeland Systems in USA. Proposed updates also reflect how market dynamics and company estimates have evolved over time, causing the need to re -establish the minimum NASDAQ liquidity standards that fit the current environment.
In the context of these changes, Nasdaq reinstates a minimum public offering of conditions specifically for companies that mainly operate in China, based on previous standards designated for “restrictive markets” in which the PCAOB accounting board (PCAOB) could not inspect them. With the implementation of this threshold, Nasdaq enhances investor protection and strengthens the liquidity profile of companies to reflect the current market environment.
In addition to enhanced registration standards, NASDAQ will continue to actively refer cases to the Securities and Exchange Commission (SEC) and the FINRA Authority for potentially manipulative commercial activities, while enhancing our cooperation with both domestic and international regulatory authorities to enhance the US markets.
Nasdaq submits the proposed rules to the Securities and Exchange Commission for review and, if approved, immediately proposes the application of changes to the initial registration requirements.
Nasdaq proposes already to be given to companies in the original registration process for a period of 30 days to complete the process in accordance with previous standards and then all new entries must meet the new requirements. In terms of the accelerated process for the suspension and deletion of companies, NASDAQ proposes the implementation of the new requirements 60 days after the approval of the sec.