Grandfather Clause Removal Results - NSS stocks

[michael_a_berenis]

If its not related, then why did PAIM release this



http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070614005....

NASDAQ Set X-Dividend Date As June 27, 2007 For Cash Dividend Distributions, Pearl Asian Mining Announces
As of January 31, 2007 PAIM O/S Float Was 6,587,389,302; Float Not Expected to Exceed 9 Billion After June 27, 2007; SEC Votes To End Short-Selling 'Grandfather' Protections

MANILA, Philippines--(BUSINESS WIRE)--Pearl Asian Mining Industries, Inc. with Stock SYMBOLS: U.S.A. (OTC: PAIM) (OTC: PAIMP) reports that NASDAQ set the x-dividend date for the cash dividend distribution as June 27, 2007. Pearl Asian Mining will distribute a Cash Dividend to each registered PAIM shareholder on record date of June 30, 2007. Therefore, only shareholders owning shares on the record date and shareholders that bought out of the market and hold beyond the X-date of June 27 will be entitled to receive the cash distribution.

“As of January 31, 2007 our o/s float was 6,587,389,302 as per records with PAIM’s Transfer Agent. The TA confirmed as of Monday our float will probably not exceed 9 billion shares even after taking into account the conversions to common shares from CDs and preferred shares,” reports IR Officer Jeffery Bosaw.

SEC Approved Regulation SHO Governing Short Sales - The Protective "Grandfather" Clause To Combat Short-Selling Abuses - SEC Votes To End Short-Selling "Grandfather" Protections

The U.S. Securities and Exchange Commission voted yesterday, June 13, 2007, to amend certain Rules under Regulation SHO – rules that govern the reporting, monitoring, and closing requirements for Failed-to-Delivers or short sales. Most notably, the SEC voted unanimously to remove the “grandfather clause” which has allowed unscrupulous parties to engage in manipulative stock trading practices, particularly naked short selling. The grandfather clause excluded from reporting and monitoring requirements short positions on stocks prior to the time these stocks were included in a threshold list of stocks with substantial short positions.

The SEC meeting may be viewed in its entirety via the following link: Once the “US SEC Open Meeting Webcasts” page opens, click the appropriate viewing software under “Archived Video Webcast, Original Live Broadcast: Wednesday, June 13, 2007.”

http://www.connectlive.com/events/secopenmeetings/

Short selling involves sales of borrowed securities, producing profits when prices decline. The practice is legal and is viewed by many to play an important role in market efficiency, but the SEC's Regulation SHO sought to curb abuses of the same, particularly so-called "naked" short sales, in which short sellers don't borrow securities they sell, a practice some view as akin to counterfeiting or selling “phantom” shares.

Regulation SHO, which took effect in 2005, imposed stricter requirements on locating and delivering shares that are sold short but excluded some previous short positions through a "grandfather" clause.

The Securities and Exchange Commission voted Wednesday to approve a change to tighten rules intended to curb manipulative short sales, most importantly, "naked" short sales.

The change eliminated an exception that protected existing short positions from requirements to deliver hard-to-borrow shares within 13 days of settlement. Once the change takes effect, short positions previously protected by the grandfather clause must be closed out within 35 days.

SEC Chairman Christopher Cox said persistent failures to deliver shares sold short seem to be due to the grandfather protections, which the SEC included in 2004 to prevent stock-market volatility. Critics complained the protections undermined efforts to clean up abuses involving "naked" short sales.

Short selling involves sales of borrowed securities, producing profits when prices decline. The practice is legal, but the SEC's Regulation SHO sought to prevent "naked" short sales, in which short sellers don't borrow securities they sell.

SEC officials said delivery failures have declined about 35% overall since Regulation SHO took effect and have fallen about 53% for hard-to-borrow stocks defined as "threshold" securities.

Furthermore, PAIM believes that since 2005 it has been a victim of naked short selling and applauds this latest action taken by the SEC, but is concerned that the new rules will not be vigorously enforced. PAIM also believes that institutions that are responsible for reporting short positions are not following the rules, and therefore the monthly reports are inaccurate.

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