U.S. securities regulators approved strict new listing standards for reverse merger companies on Wednesday amid a rash of recent accounting scandals.

Under the new listing standards approved by the U.S. Securities and Exchange Commission, any company that becomes public through a reverse merger will have to meet stricter new requirements before they can list on NASDAQ OMX , NYSE Euronext and NYSE AMEX.

A reverse merger is a method of entering the market where U.S. shell companies merge with foreign companies. Many of the companies that have been targeted by regulators for accounting issues have been based in China.