On July 29, 2026, the U.S. Securities and Exchange Commission (SEC) announced it had stayed its July 22, 2026 order approving Nasdaq’s rule to require listed companies to maintain a minimum Market Value of Listed Securities (MVLS) of at least $5 million. The stay is procedural and temporary, triggered automatically after the Small Public Company Coalition and Cemtrex filed notices of intent to seek SEC review of the approval.
The new standard differs from Nasdaq’s other continued listing requirements because it does not provide a customary cure or compliance period. If the rule takes effect, small-cap and micro-cap issuers that fail to maintain the $5 million MVLS for 30 consecutive business days would face delisting and would need to meet Nasdaq’s more stringent initial listing requirements to regain compliance.
Under the current process, a company can appeal a delisting determination to a Nasdaq hearing panel, but the appeal does not stay the suspension of trading. The company’s securities would trade over-the-counter pending the panel’s decision. The panel may reverse the determination if it finds staff error or grant an exception of up to 180 days for the company to demonstrate compliance with initial listing requirements.
The petitioners now have five days to file formal petitions for review. The SEC could ultimately deny the petitions and reinstate the rule. In the meantime, boards of affected companies are advised to monitor their MVLS, understand the delisting and appeal process, evaluate their ability to meet initial listing requirements, and track the SEC’s review proceedings.
Source: mondaq.com
