According to the SEC, Nasdaq can now refuse IPOs from firms linked to non-cooperative jurisdictions or other integrity concerns, aiming to curb manipulation after steep declines in small listings.
The U.S. Securities and Exchange Commission has approved a Nasdaq rule granting the exchange expanded discretion to reject IPO applications with potential market manipulation risks. The policy, effective immediately, targets companies connected to non-cooperative jurisdictions, questionable advisors, or management integrity issues. This follows a pattern where many small-cap IPOs experienced price drops exceeding 35% within a year of listing.