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The Israeli Capital
Markets- Overview
and Development
The Israeli capital markets are highly regulated and very developed. The main regulatory
authority that oversees the Israeli capital markets is the Israel Securities Authority
(“ISA”) whose function is to protect the interests of public investors in Israel. In such
capacity, the ISA directly supervises the ongoing operations of most actors operating
in the capital market, including the Tel Aviv Stock Exchange ("TASE"), public companies,
mutual fund managers, portfolio managers, investment advisors and underwriters, with
the aim of ensuring fair practices and transparency alongside with enforcement and
deterrence.
Currently,theIsraelimarketischaracterized
by a continuing tendency for companies
to delist, and approximately 20 were
delisted from the TASE during 2016.
This occurred, through reverse triangle
mergers,which isaviableprivatizationtool,
or they were delisted on account of the
Law of Centralization 5774-2013, which
was designed to increase competition in
Israel and to weaken the excessive control
over Israeli business held by a relatively
small number of corporations. This figure
is the lowest in nine years.
From January 2015 until September 2016, approximately NIS255 billion were raised on
the TASE, as presented below:
79%
13%
4% 4%
As of September 2016, 570 companies were listed as
trading on the TASE
Companies that had issued shares or bonds
Companies that had issued bonds only
Companies that had issued bonds only to institutional investors
Companies that had issued ETFs’ currency ETFs and structured bonds
0
20
40
60
80
100
120
140
2015
Jan-Sep 2016
Shares and Convertible
securities
Bonds