Tel Aviv, March 15
Israel's Deputy Prime Minister and Minister of Justice Yariv Levin on Thursday signed the new corporate regulations (concessions for companies whose securities are listed for trading on the stock exchange outside of Israel) after they were approved by the Knesset's Constitution Committee.
The regulations are intended to ease the application of Israeli corporate law to companies that trade on foreign stock exchanges, mainly in the United States, in a way that will allow them to operate under similar regulatory conditions to their competitors in those markets.
Today, there are about 200 Israeli companies that are listed for trading on stock exchanges abroad, of which about 50 are companies Dualities that are traded at the same time also on the Tel Aviv Stock Exchange and the discount rule will apply in the same way to them as well.These companies which were incorporated in Israel and often a significant part of their activity is in Israel, are traded in foreign markets that are not affected by the situation in Israel and therefore may find themselves at a structured disadvantage these days compared to foreign companies trading in those markets, due to the state of war and the risk premium added to trading in the shares of an Israeli company.
Many of these companies are high-tech companies, an industry that is an engine of growth for the Israeli economy, and the approved regulations are intended to encourage these companies to continue to incorporate in Israel, as well as to register for trading in Israel alongside listing on stock exchanges abroad in order to develop the local capital market, especially at this time when significant economic challenges are facing at the doorstep of the Israeli economy. (ANI/TPS)