The Securities and Exchange Commission approved and published for comment an NYSE rule change that waives for foreign companies the application of a listing rule that requires them to be eligible for participation in a direct registration system operated by a securities depository.

While Section 501.00 of NYSE’s Listed Company Manual required that all listed equity securities must be eligible for participation in a direct registration system operated by a securities depository, NYSE noted in its proposed rule change that the laws of some countries prohibit compliance with the rule by some foreign private issuers.

The rule change waives application of the rule for FPIs that submit a letter to the exchange from independent counsel certifying that a home country law or regulation prohibits compliance. All other foreign private issuers are required to comply.

NYSE also modified portion of the section to remove text relating to transition periods that have since expired.