חוק ניירות ערך (תיקון מס' 63), התשע"ז-2017Law Securities (Amendment No. 63), 2017 · automatic translation · suggest a correction

Official summary of the law (Knesset)

The Securities Law (Amendment No. 63), 2017 (hereinafter - the Amendment), was passed in second and third reading at a session held on 20 March 2017 and at a session held on 5 April 2017. The Amendment establishes provisions for changing the control structure of the Stock Exchange so that an owner of the Stock Exchange cannot be a member of the Stock Exchange and vice versa. It is determined that the Stock Exchange will formulate, within 4 months, a proposal regarding the manner of allocating equity share rights in the Stock Exchange among its members and submit it to the court. If no request regarding the manner of allocating the rights is submitted to the court, or if the court does not approve the request, the chairman of the Israel Securities Authority will be authorized to appoint an expert to formulate a proposal for the manner of allocating the rights. It was further determined that the Stock Exchange will publish on its website all commissions charged by Stock Exchange members to their clients in a manner that allows comparison between commissions. In addition, the Stock Exchange will report to the Finance Committee once a year on these commissions, including a comparison with similar commissions charged on stock exchanges outside Israel. Regarding the manner in which the Israel Securities Authority supervises the Stock Exchange, it was determined that the chairman of the Israel Securities Authority may order the participation of an observer in board meetings and general assembly meetings if he believes that the Stock Exchange is being managed in a manner that harms the interests of the investing public. Provisions were also established regarding the corporate governance that will apply at the Stock Exchange, such that the board of directors will include at most 15 members, most of whom will be independent directors. In addition, the conditions and considerations were established under which the Minister of Finance will be authorized, after consulting with the Israel Securities Authority and with the approval of the Knesset Finance Committee, to grant a stock exchange license to a company that meets the conditions set forth in the Amendment. Among other things, the company and any corporation in which it holds means of control must engage only in activities permitted to the Stock Exchange, it must have adopted bylaws approved by the Israel Securities Authority and the Minister of Finance, and it must have the technical proficiency and appropriate means to operate a securities trading system in a manner that ensures the system's stability. The Minister of Finance is also authorized to set conditions in the stock exchange license. It was determined that for four years from the effective date of the Amendment, the chairman of the Israel Securities Authority will report to the Finance Committee once a year on the implementation of the Law.

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