Bill: Draft Substantial Holdings Act

[xSyncx]

A
BILL
To

Reduce information asymmetry in investment​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:

1 - Short Title and Enactment
(1) This Act may be cited as the ‘Substantial Holdings Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored by Representative xSyncx.
(4) This Act has been co-sponsored by Representative smokeyybunnyyy.

2 - Reasons
(1) Millions of dollars of company stock move each day, often in dark pools, hidden from the general public.
(2) Such significant changes in holding may influence an investor's decision to buy or sell.

3 - Definitions
For the purpose of this bill, the following definitions apply:
(1) Substantial Shareholder: Any person or entity that owns more than 10% of the voting shares in a company.

4 - Disclosure Criteria
(1) Stock exchanges are required to publish the following shareholding changes:
(a) New Substantial Holding: When a shareholder purchases shares, and becomes a substantial shareholder by doing so.
(b) Change in Substantial Holding: When a substantial shareholder purchases or sells shares, while remaining a substantial shareholder.
(c) Exiting Substantial Holding: When a substantial shareholder sells shares, and is no longer a substantial shareholder afterwards.

5 - Disclosure Details
(1) Stock exchange’s must notify the public of substantial shareholding changes, as listed in Section 4, in a way that is permanent and publicly displayed. This notice must be made within a three day window following the shareholding change. The details must include the:
- Name of the traded stock
- Substantial shareholder’s name. For a player, this is their IGN. For a company, this is their official name.
- Old holding; number and percentage of voting shares held.
- New holding; number and percentage of voting shares held.