The US Securities and Exchange Commission plans to relax small business listing rules to boost the IPO market

The US Securities and Exchange Commission is planning to make it easier for small companies to list by cutting mandatory disclosure requirements and reducing compliance standards in line with corporate size. In remarks prepared for Tuesday's New York Stock Exchange event, Paul Atkins, SEC chairperson, said the move could boost IPO reserves and revive the lineup of listed companies. The changes include a "transition period" of at least two years, rather than just one, for companies to gradually meet listing rule requirements, such as phased disclosures to investors and other reports. The agency will also review the criteria for defining small businesses to ease their burden. Mr. Atkins noted that it was two decades ago that the criteria for defining corporate size were last significantly adjusted, and lamented that the number of companies listed today is about half that of three decades ago. " Our regulatory framework should provide IPO opportunities for companies at all stages of growth and in all sectors, "he said, noting that compliance costs" may disproportionately affect some companies ".