Suspension of Trade
Suspension of trade is the halt of trade in a security for a period of time of more than one trading day. Suspension of trade takes place in circumstances in which there is concern that it will not be possible to engage in proper and fair trade in the security. During the suspension of trade, there is no trading in the security, but the company is subject to all the obligations that apply to TASE listed companies, such as the publication of financial statements, reporting on the convening of general meetings and the publication of other immediate reports.
The Causes for Suspension of Trade
- Lack of clarity in a matter relating to the company or its controlling shareholders, or its security, which might affect the price of the security.
- The appointment of a liquidator, provisional liquidator, receiver or provisional receiver for the company or most of its assets (in case of a limited partnership - if a receiver is appointed for the partnership's assets or a decision is made to dissolve it).
- Non-publication of financial statements.
- The share price was 1 Agora (0.01 NIS) for 15 trading days of the last 30 calendar days (the examination takes place at the end of each trading day).
- The call for immediate payment of a series of bonds.
On the suspension of trade in a security, TASE publishes a notice that trade in the security has been suspended.
Where the cause for suspension of trade is non-publication of financial statements, TASE publishes, about two weeks before the suspension date, a list of the companies which have not yet published financial statements and are expected to be suspended from trade.
In cases of suspension of trade in consequence of lack of clarity or the appointment of a receiver / liquidator, the approval of TASE's Board of Directors is needed for the continued suspension of trade. TASE publishes a notice to the public and to the company regarding the time when the Board of Directors will discuss the continued suspension of trade, and allows the public and the company, to raise, insofar as necessary, their argument to the board of directors.
Where the suspension is in respect of other causes, it takes place immediately when the cause for suspension arises.
List of Companies under Suspension of Trade
The list of companies which have been suspended from trade can be found on the
TASE website and on the
Maya website (selection from a group of companies - in Hebrew).
When securities of a company have been suspended from trade, the word "suspended" is added alongside the company's name in all its reports to the public that are published on "Maya".
How long can a security be suspended from trade?
The maximum period of time during which a security can be suspended from trade is 48 months. If at the end of this period the conditions enabling the security's return to the main list are not fulfilled, the security is delisted from trade, with the exception of bonds in which trade was suspended because they were called for immediate payment. In such case, the bonds will be delisted from trade on their original final redemption date, whether they were redeemed by the company or not.
Renewal of Trade
The condition for the renewal of trade in a security is cancellation of the cause for its suspension from trade, as well as the non-existence of another suspension cause, as detailed in the
Renewal of Trade chapter.
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