Corporates and their most prominent investors are at odds over new regulations meant to “modernize” how shareholders report their holdings, reports Financial Times.
In February, the Securities and Exchange Commission proposed new rules to increase transparency in stock markets by shortening the 10-day window to 5 days for investors to reveal when they have built a stake of over 5 percent in a company.
The rules would also clarify the definition of an investor “group.” Currently, the regulatory framework does not require proof of an agreement between two or more persons as a prerequisite to establishing the existence of a group.
But some courts have suggested that a group can only be formed if an agreement exists among its purported members.
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