Some SEC rules apply to all publicly traded companies. In 2010, it was announced the SEC is seeking comment on repurchase safe harbor rules applying to OTC stocks.
The SEC is also seeking public comment regarding other aspects of the safe harbor, including:
- The application of the safe harbor to securities trading on the over-the-counter markets, such as the OTCBB and Pink Sheets, and any additional restrictions on repurchases of such securities that would help minimize market manipulation.
- The sufficiency of the safe harbor’s volume condition or the thresholds necessary to satisfy that condition.
- The availability of the safe harbor for purchases using other passive and independently-derived pricing mechanisms, such as NBBO.
- The availability of the safe harbor when an issuer’s insiders are selling the issuer’s stock.
- The disclosures that should be required to be eligible for the safe harbor, including current financial information and specified information regarding the share repurchases and the timing of such disclosures.
- The maintenance of records evidencing compliance with the provisions of the safe harbor.
- The expansion of the safe harbor to cover other securities of the issuer, such as preferred stock, warrants, convertible debt securities, securities futures or option contracts or other securities.
- The application of the safe harbor to the purchases of an issuer’s securities on foreign exchanges, the issuers that should be eligible for any such provision and the conditions applicable to such purchase
