The Nasdaq Stock Market recently proposed a new rule with the Securities and Exchange Commission that would impact serial late filers trading on the OTC Bulletin Board. Under the proposal, OTCBB issuers that file late periodic reports three times—or are removed for filing delinquency two times in a 24-month period—will be ineligible for OTCBB quotation for one year. The proposal is just one of several moves made by the major exchanges to crack down on late filers amid increased analyst scrutiny.
NASDAQ is hoping to make the rule amendment effective for filings with a period ending on or after June 1, 2005. If approved, the rule would not be retroactive; no issuer would be made immediately ineligible from continued quotation on the OTCBB.
