InCapta Inc (INCT)

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Amended rule 15c2-11 goes into effect 9 months from the effective date. Article below it explains a bit better than the SEC news.

SEC news

Washington D.C., Sept. 16, 2020 —
The Securities and Exchange Commission today adopted amendments to Exchange Act Rule 15c2-11, an important component of the over-the-counter (OTC) market regulatory structure.

The Rule will become effective 60 days following publication of the amendments in the Federal Register. The Rule will have a general compliance date that is nine months after the effective date as well as a compliance date that is two years after the effective date regarding provisions to require an issuer’s financial information for the last two fiscal years to be current and publicly available.

https://www.sec.gov/news/press-release/2020-212


Article on new SEC rule.

Effective Date

The amendments become effective 60 days following their publication in the Federal Register. The general compliance date is nine months after the effective date, with an exception for certain historical information. In an effort to prevent the retroactive application of the new amendments, the SEC has delayed for two years the requirement that a company’s financial statements for the two preceding fiscal years be current and publicly available.

Many OTC companies that report below “Pink Current” level, or do not report at all, may face significantly curtailed broker ability to quote their stock, potentially with no public quote available.

Next Steps

OTC companies that provide limited or no public information about the company, or are not timely in their disclosures, should consider whether to update and enhance their public disclosure on the OTC Markets. Companies may also want to consider potentially changing from the OTC Pink to the OTCQX “premier” tier of the OTC Markets or, perhaps, uplisting to a stock exchange such as the Nasdaq, NYSE or NYSE American, if the exchange listing standards can be met.

The OTC Markets publishes the Pink Basic Disclosure Guidelines for OTC Pink Current companies, which set out the requirements for the OTC reports that are essentially simplified versions of SEC periodic reports. The Pink Basic Disclosure Guidelines are designed to prescribe the information necessary to satisfy the current public information requirements under Rule 15c2-11.

The amendments should lead to some new market practices, including potential development of new limited markets for certain companies and certain investors, and to some changes in OTC requirements. However, given what is at stake, waiting is not advisable.

Boards of directors of OTC companies should promptly evaluate the potential effect of these amendments and make a determination as to current public information. To the extent they are not current, OTC companies should act quickly in providing these additional disclosures.

Our team can assist you with evaluating the impact of these amendments and the implementation of enhanced disclosure.

https://www.thompsonhine.com/publications/sec-rules-seek-to-force-otc-companies-to-provide-greater-disclosure

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