כניסה

Finance Committee of the Knesset approved the proposal to tighten the Maintenance List rules submitted by the ISA and the TASE
The Finance committee of the Knesset had approved the proposal to tighten the rules pertaining to companies on the Maintenance List of the Tel Aviv Stock Exchange. The proposal was jointly submitted by the ISA and the TASE. From now on the required value of public holdings will rise from 2.4 million of NIS to 5 million of NIS. Thus, the required rate of public holdings will rise from 7.5% to 15%; the value of public holdings that provides exemption from the aforesaid criteria will rise from 8 million of NIS to 15 million of NIS. 
 
The Committee also approved the proposal to update the requirements for leaving the Maintenance List and going back to regular trading. The required value of public holdings will rise from 3.5 million of NIS to 7 million of NIS. The required rate of public holdings will rise from 10% to 20%.
 
Following the approved regulation the company will be deleted from trade after a period of two years from the date it was transferred to the Maintenance List or from the date it was suspended from trade, accordingly. The terms for trade resumption will be identical to terms presently required for the resumption of trade after a two year suspension, from the date the company ceased to be traded on the stock exchange.
 
The Hauser' Committee report for "Minimization of fraud on the capital market", submitted to the chairman of the ISA two and a half years ago, stipulated that there is a potential risk of carrying out fraudulent trade activities embedded in trade of low negotiability securities, and advised to tighten the maintenance regulations.
 
During the discussion Mr. Tery, the chairman of the ISA, had pointed out that the amendment will improve the quality of trade on the stock exchange. Since, in his opinion, the companies whose securities are characterized as "low traded" are more exposed to fraud and trade manipulation. He also added that shell companies are also exposed to takeover by dubious elements.



Tags:
Recent PublicationsArchive

Systems and Forms

22 Kanfei Nesharim St., Jerusalem 95464. Tel: 02-6556555, Fax: 02-6513646
|
|
|
|
|
|
Developed by
All rights reserved to the ISA ©