Tel Aviv Stock Exchange Board approves temporary easement of dual listing and maintenance rules

Tel Aviv Stock Exchange Board approves temporary easement of dual listing and maintenance rules


The Tel Aviv Stock Exchange (TASE) Board of Directors adopted resolutions on 5 November 2009 to amend criteria for dually listing shares traded on the NASDAQ Capital Market list and for transference of thinly-traded companies to the ‘maintenance list’. These new criteria will be valid for six months (until 30/4/2010).

The board’s decision lowers the threshold market value entitling companies listed on the NASDAQ Capital market to take advantage of the dual-listing provisions from NIS 45 million to NIS 25 million (approximately US$ 6 million). Companies opting to dually list their shares on the TASE and a select list of foreign stock exchanges are entitled to a TASE listing based on the regulatory demands and disclosure documentation required by the foreign exchange. These provisions obviate the need to comply with two sets of regulatory standards and file two sets of documents.

In a separate resolution, the TASE Board approved temporarily amending the threshold market value for transference to the maintenance list. Transfer to the maintenance list is a probationary measure taken by TASE before delisting a company’s share for failure to maintain threshold listing criteria. According to the resolution, companies will be required to maintain public holdings of at least NIS 4 million rather than NIS 5 million stipulated in TASE bylaws. All other criteria, including the 15% minimal public float, will remain unchanged.

Companies will have seven months to prepare for the next examination, which is scheduled for the end of June 2010 and it is anticipated that many will in fact undertake preemptive measures to avoid their transfer to the maintenance list. Since the outbreak of the global economic crisis, the TASE has twice postponed the examination of company compliance to maintenance rules. In November 2008 the Board decided to postpone the examination scheduled for January 2009, to July 2009, while in May 2009, the latter scheduled examination was postponed as well.

The above resolutions are subject to the approval of the Israel Securities Authority.