To be more specific, it requires them to have a token on the board or to explain why they do not have one. I've no idea what happens if the explanation provided doesn't satisfy party requirements.

In theory this SEC-approved rule would compel companies to break the law by hiring based on gender, race, or sexual orientation if they don't get 'diversity' simply by hiring the best candidate. In practice there's no change. Pretty much every corporation has an HR or 'diversity and inclusion' chief, a role that where straight white males are as unicorns.

More details: https://www.eyeonesg.com/2021/08/sec-approves-nasdaq-board-diversity-rule/