TheEnsuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges Act (EQUITABLE Act) was a proposed bill to amend theSarbanes-Oxley Act to require theU.S. Securities and Exchange Commission to de-list foreign companies traded on U.S. stock exchanges that do not comply with oversight and audit rules.[1] Under the bipartisan bill, foreign companies traded on U.S. stock exchanges that refused to allow thePublic Company Accounting Oversight Board to inspect their financial records would face de-listing.[2][3][4] The bill was introduced in 2019 byMarco Rubio and co-sponsored byBob Menendez,Tom Cotton, andKirsten Gillibrand. The bill was a response to the lack of financial transparency of Chinese companies listed on U.S. stock exchanges, often resulting fromreverse mergers, and defrauding of investors.[5][6][7]
