New US Legislation Expected to Increase Efficiency of Certain US Listings and Securities Offerings

April 5, 2012


Dear clients and friends,

The “Jumpstart Our Business Startups Act” (the “JOBS Act”) is shortly expected to become law in the United States and will significantly reduce the regulatory requirements for public and private securities offerings in the United States by companies with less than US$1 billion in annual revenues.

A key feature of the JOBS Act is that companies meetings certain eligibility criteria (defined generally as companies with less than US$1 billion in annual revenues) will benefit from the following dispensations:

  • reduced disclosure requirements;
  • ability to undertake confidential filings of the registration statement with the SEC;
  • permission for research analysts to participate in certain activities during initial public offerings; and
  • reduced ongoing corporate governance requirements.

The JOBS Act draws no distinction between US and non-US issuers, other than with respect to the crowdfunding provisions; however, the Securities and Exchange Commission rules to implement certain parts of the JOBS Act may include such a distinction.

If you would like a copy of the note, please contact any member of the India practice team.

Thanks and regards
O'Melveny & Myers

O’Melveny & Myers is not licensed to practice Indian law, and nothing in this Client Alert should be deemed to be an opinion on or advice concerning Indian law. The above is summarized from publicly available sources and is prepared as a convenience to our clients and friends outside of India.

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