The Securities and Exchange Commission has proposed rules that would make it easier for foreign companies to shed the grasp of U.S. securities laws and regulators.
Under existing rules, a foreign company is still subject to SEC oversight and the Securities Exchange Act even if it has delisted from American exchanges as long as it has 300 shareholders in the United States. Foreign private issuers often call the situation a “roach motel”—they can get into the U.S. securities market, but they can’t get out.
