A panel of small business experts on Friday urged U.S. securities regulators to encourage the creation of a new exchange to list smaller companies to make it easier for them to enter the public market.
The recommendation by the Advisory Committee on Small and Emerging Companies to the Securities and Exchange Commission is not binding.
Still, policy suggestions from the group carry weight with regulators, who created the committee in 2011 to seek advice on regulations affecting private companies and public companies with a market capitalization of less than $250 million.
The 2012 Jumpstart Our Business Startups (JOBS) Act already contains provisions that aim to make it easier for smaller companies to go public by loosening securities regulations.
However, Stephen Graham, a partner at law firm Fenwick & West LLP and co-chair of the advisory committee, said the law does not go far enough to encourage initial public offerings by smaller companies.
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