Securities and Exchange Commission of the United States of America, which is the enforcing agency for security laws in the country, has decided to add Chinese tech giant Alibaba Group Holding Limited to the list of companies that might be delisted.
SEC which is a federal agency and regulator of capital markets in the United States have been behind Chinese companies such as Alibaba for a very long time.
According to news reports, the SEC has ordered Alibaba to submit its books of accounts with the agency as soon as possible. The books of accounts of the multimillion-dollar company are currently with auditors in China.
Jack Ma is the founder of Alibaba
This move by SEC comes amidst a report by the Wall Street Journal that the cofounder of Alibaba Group, Jack Ma, is planning to recuse himself from the control of Ant Group. Ant Group which is an affiliate business entity of Alibaba Group is into the business of providing financial payment services etc. The move by Jack Ma to cede control of Ant Groups comes after strict orders from Chinese authorities and market regulators regarding the decoupling of Alibaba and Ant Group from each other.
If SEC plans to go ahead with the demands for submitting books of accounts, and the Alibaba company does not comply with it, the SEC would eventually delist the company from capital markets in the country.
Alibaba, which was founded by Jack Ma in 1999 as a B2B Chinese marketplace got listed on New York Stock Exchange in September 2014. The…
