SEC Reopens Comment Period for Proposal to Enhance Disclosure on Share Repurchases

The SEC reopened the comment period for a proposal that would require issuers to provide additional, more comprehensive and more frequent disclosures on a new Form SR regarding each day that an issuer, or affiliated purchaser, makes a share repurchase. Comments must be submitted 30 days after publication in the Federal Register.

As previously covered, the proposal would (i) establish a new Exchange Act Rule 13a-21 and corresponding Form SR that would apply to registered issuers, including foreign private issuers and certain types of registered closed-end funds, and require reporting of share repurchases made by or on behalf of an issuer or any affiliated purchaser on each day it enters into share repurchase and (ii) require additional disclosures from each issuer engaging in a share repurchase, including the rationale for the issuer's share repurchases and whether officers or directors of the issuer sold shares in a period where the issuer was engaged in repurchasing shares.