The Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges Act (EQUITABLE Act) was a proposed bill to amend the Sarbanes-Oxley Act to require the U.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 the Public Company Accounting Oversight Board to inspect their financial records would face de-listing.[2][3][4] The bill was introduced in 2019 by Marco Rubio and co-sponsored by Bob Menendez, Tom Cotton, and Kirsten Gillibrand. The bill was a response to the lack of financial transparency of Chinese companies listed on U.S. stock exchanges, often resulting from reverse mergers, and defrauding of investors.[5][6][7]
