Securities that do not fulfil the conditions allowing for proper trade therein are ultimately delisted from trade on TASE.
The date on which a Security is delisted from Trade on TASE
A security, which has ceased to trade on the main list, either because of its transfer to the maintenance list or because trade therein was suspended, and which conditions for the renewal of trade on the main list have not been fulfilled within 48 months shell be delisted from trade on TASE.
Additional Cases in Which Securities are delisted from Trade
- If a permanent liquidator has been appointed for a company, the company's securities are delisted from trade on TASE by no later than 180 days from the date of the liquidator's appointment.
- If a full tender offer is made for a security, or in the event of a merger, or arrangement, in consequence of which the public no longer holds securities.
- If the public holdings value in convertible bonds or value of a series of corporate bonds is less than NIS 1.6 million, the bonds are delisted from trade within 60 days of the end of the quarter in which the value fell below the aforesaid requirements.
Can a company be delisted from trade on TASE on its own initiative?
A company can be delisted from trade on TASE on its own initiative if it has taken proceedings pursuant to section 350 of the Companies Law, of an arrangement between it and its shareholders, and received the shareholders' consent and the court's approval. In such case, the company is delisted from trade on TASE 60 days after receipt of all the required approvals.
What Happens to Securities held by the Public after they are delisted from Trade on TASE?
After delisting from TASE, the public holds securities that are not listed for trade on TASE. The securities that have been delisted remain registered with TASE Clearing House, and appear in the securities account of their holders. The shares still represent the pro rata shareholdings in the company, and the bonds represent the debt.
The sale of unlisted shares or bonds might be taxable. After the delisting the rights attached to the bonds, such as the right of conversion, the right to receive interest and redemption and alike, are not affected.