ADRs for sale!

Author: | Published: 1 Dec 2008

Recent changes to US securities regulations have allowed US investors to trade in shares of more non-US companies than was previously possible. Many of the companies that have been the target of this trading were caught unaware by these developments, have expressed concern that they may not meet the requirements necessary for that trading to occur and are unsure about what they should do in response.

On September 5 2008, the US Securities and Exchange Commission (SEC) adopted amendments to Rule 12g3-2(b), promulgated under the United States Securities Exchange Act of 1934 (Exchange Act), which exempt a foreign private issuer from having to register a class of equity securities under Section 12(g) of the Exchange Act and modify certain provisions of Form F-6, which is the registration statement form used to register American depositary shares (ADSs) evidenced by American depositary receipts (ADRs). The amendments, originally intended to improve the trading...