The dual listing arrangement entered into force in Israel with the enactment of Chapter Five "C" of the Securities Law 1968 (hereinafter, “the Law”). The arrangement allows companies traded on a list of approved foreign stock exchanges, to trade in TASE as well, based on the regulatory framework imposed on them in the foreign market. Following is a list of approved stock exchanges to date:
· New York Stock Exchange;
· London Stock Exchange - Premium and High Growth Segment;
· Toronto Stock Exchange – Main Board;
· Singapore Stock Exchange – Main Board;
· Hong Kong Stock Exchange – Main Board.
The Dual Listing arrangement exempts companies listed for trade in Israel from reporting requirements pursuant to the Israeli Securities Law and allows them to continue reporting according to the foreign law that applies to them (i.e. foreign security laws and regulations); In these cases, the ISA is relying on the foreign regulator's supervision in those respective countries.
Behind the development of Chapter Five "C" of the Law was the assessment that the foreign law affords proper protection to investors based on multiple “circles” of protection provided by the foreign ecosystem: foreign disclosure and reporting requirements, foreign regulatory oversight and foreign market mechanisms.
The Dual Listing arrangement also allows dual-listed companies to issue securities in TASE based on their foreign prospectus, based on an exemption that may be contingent upon certain conditions.
For more information on how dual listing works, see our Guide for Dual-Listed Companies.