The Securities and Exchange Commission (SEC) has submitted a request to the Office of Management and Budget (OMB) to extend a rule under the Paperwork Reduction Act of 1995. This rule, known as Rule 236, provides an exemption from registration for stock offerings related to company actions like stock splits or mergers, allowing certain information to be provided to the SEC and made publicly available. The SEC estimates that around 10 public companies will respond to this requirement annually, with each response taking about 1.5 hours. Comments on this information collection can be submitted within 30 days.
Simple Explanation
The SEC is asking for permission from another government office to keep a rule that lets some companies skip a step when they change their stocks, like when they merge or split. This process takes a little bit of time each year for these companies, and they’d like people to share their thoughts about it.