ISA may require large multinationals including Google and Apple to list in Israel
Israel Securities Authority (ISA) may force firms with more than USD 100bn valuation with Israeli business presence, to list shares in Israel, according to a report in Globes. The report noted that ISA published a proposal for legislation regarding non-voluntary listing of international businesses listed on international stock exchanges. As per the proposal, companies will not be required to make disclosures on affairs, and the listing will be without the will of the company itself. Tel Aviv Stock Exchange (TASE) had earlier in 2015 made a proposal for compulsory and involuntary listing of Israeli firms, especially in high-tech industries, listed on stock exchanges overseas as well.
ISA, however, sees problems with the proposal put forward by TASE, and in its alternative offers to adopt the model for large non-Israeli firms with more than USD 100bn valuation. As per ISA's proposal, the shares may be delisted if trading is halted on the company on the overseas exchange, or should the market cap fall to less than USD 90bn. The report suggested that the move, which is aimed at increasing interest in TASE, may have a negative impact on investors, as it may make it harder for them to sue international firms in the event of damages, render arrangements for dual listing unnessary, and put pressure on the market for domestic issues. Apple and Google may be required to list in Israel, should the legislation go through, the report added.
Source Globes