SEC OKs Nasdaq’s Request to Scrap Corporate Board Diversity Rule

A federal appeals court recently ruled that the SEC lacked the authority to approve the diversity rule in 2021 because of its far-reaching economic impact.

The Nasdaq logo is displayed at the Nasdaq Market site in Times Square in New York City, on Dec. 3, 2021. Jeenah Moon/Reuters

The Securities and Exchange Commission (SEC) has approved Nasdaq’s request to rescind a rule that would impose diversity quotas on the boards of companies listed on the exchange.

In a Jan. 24 order, the SEC said Nasdaq can move forward to remove the rule from its rulebook, giving the stock exchange operator until Feb. 4 to implement the changes.