Market Profiles

RBC IS operates a segregated account structure in this market.

Whilst no documents are required in this market, it is prudent to hold on record client documents to show the legal existence of the client in case the agent or the country regulator requests it.

For further information or support around accessing this market, please contact your RBC IS representative.

Tel Aviv Stock Exchange (TASE)
The exchange plays a major role in the economy and is a key player in its economic growth by raising capital to finance investments and activities. TASE's main function is to approve the issue of new securities and to provide trading facilities for all security types and clearing transactions.

The TASE is a private company limited by shares. It is owned by its members, both banks and non-banking corporations, through which anybody may trade in the securities listed on the exchange. Legally the exchange is regulated by the Securities Law (1968), and falls under the direct supervision of the Israel Securities Authority (ISA).

Trading for equities and Fixed Interest is conducted Sunday through Thursday. Cash and Securities settlement can be on Sunday through to Friday, as agreed by the parties. Trades due for settlement on a Sunday will be posted to the client account on the following Monday.

There are currently two trading methods on the TASE, The Tel-Aviv Continuous Trading (TACT) system and the MTS Trading system for Primary Dealers of government bonds only.

TACT is an order driven, fully automated open system and electronically matches routed orders in fractions of a second. Investors can trade shares, bonds and derivatives on the same platform. TACT terminals enable local investors to buy and sell securities in members' offices throughout Israel. 

Trading in all securities and derivatives is conducted through a computerised system composed of the member's trading stations (PCs) and mainframe computers, which are linked to the trading engine at the TASE by a sophisticated communications network. 

The TACT trading sessions are conducted from Sunday through Thursday. Each trading session is divided into four phases:

1) Pre-Opening Phase: 
During the pre-opening phase, bid and ask orders in securities are sent to the TASE's trading system, but no transactions are performed. 

The minimum order size is the smallest trading unit in securities on the TASE. In equities, the minimum is one share; in warrants, one trading unit of a warrant; in convertible bonds, one NIS par value. 

The maximum price fluctuation in equities and in convertible bonds is ±35% from the base price. In warrants the maximum volatility is ±35% from the base price of the exercise share, multiplied by the exercise ratio. Starting at 09:10, theoretical price and theoretical turnover are posted, for each security separately, as they would be if the opening trade and the opening price calculation were performed at that moment. The theoretical price is calculated in the same way as the opening price. 

Only orders that do not affect the opening price can be changed until 09:40 (in shares included in major indices) or 10:10 (in other shares and convertibles). 
In this phase, theoretical prices for the intra-day indices are published every 30 seconds. The indices are calculated according to theoretical prices for the securities included in the index.


2) Opening Phase:
During the opening phase, a call auction is carried out for each security separately. At its conclusion, each security's price is set. This is the opening price, at which transactions based on orders submitted during the pre-opening phase are performed. This trading phase lasts just a few seconds. The opening price and turnover are calculated for each security separately, in a random order.

A security's opening price is the price at which the cumulative supply and demand curves intersect, and at which the largest turnover is achieved. If maximum turnover is achieved at several prices, the opening price is set at the price closest to the base price, regardless of the trend. There are three cases in which the opening price is set at the base price, and the opening turnover is zero:

• No orders were submitted for the security.
• All of the orders submitted were supply orders only or demand orders only.
• Both supply and demand orders were submitted, but there is no price intersection

Order priorities are determined by the price limit (first priority) and the time (second priority). Orders that can be executed during the opening phase are sell orders with a price limit lower than or equal to the opening price, and buy orders with a price limit higher than or equal to the opening price. Due to the order priorities, some of these orders may not be executed.

In Limit (LMT) type orders that are not executed, or are partially executed, during the opening phase, the remaining part is automatically transferred to the continuous trading phase, at the original price limit and time priority. In Limit Opening (LMO) type orders that are not executed, or are partially executed, during the opening phase, the remaining part is cancelled and deleted from the books.

During the opening phase of a particular security, orders for that security cannot be added, changed or cancelled. 

The maximum price fluctuation for bonds and T-bills during this phase is ±6%.

3) Continuous Trading ("RATZIF" stage):
During this phase, trading is bilateral, continuous and simultaneous. Each transaction is executed at the price determined by the intersection of a bid and ask order. There is no price fluctuation limit during the continuous trading phase. 

The order book during the continuous trading phase is a list of all the orders received that have not yet been matched to their counterparts and have not yet resulted in a transaction. The order queue is managed according to price priority first and time priority second. 

Each new order is examined in turn, against the orders in the book, in order to match it to suitable counterparts. A new order may be matched to one or more orders in the book. The match between two orders creates a transaction, at a price identical to the price limit of the order in the book. If the new order cannot be matched, in full or in part, with an order or orders in the book, the order or the unexecuted part of the order is recorded in the order book. If the matching of the new order with an order in the book results in a remainder left over from the order in the book, the unexecuted part remains in the order book and keeps the priority level of the original order. Orders can be changed or cancelled as long as they have not been fully matched with a counterpart order or orders. 

A change in the quantity of an order as a result of partial execution does not cause a change in the execution priority of the remaining part. A change in the price of the order causes it to be replaced with a new amended order, whose priority is determined by the price limit of the amended order and the time of the change. 

Minimum sizes of orders in the continuous trading phase, in equities and convertible bonds are:

• TA-25 shares – shares at a monetary value of NIS 5,000.
• TA-75 and Yeter shares – securities at a monetary value of NIS 2,000.
• Warrants – an amount of warrants equal to the minimum amount of shares in an order of the underlying asset, divided by the exercise ratio.
• T-bills – par value 30,000 (the T-bill market is the only market in which the minimum size is noted in par value rather than in monetary value).
• Bonds – bonds at a monetary value of NIS 30,000.

During the continuous trading phase, orders at a lower monetary value that were transferred from the opening phase are also traded. At the end of the continuous trading phase, unexecuted orders are transferred to the closing price phase.

4) Pre Closing Phase: 
In this phase, bid and ask orders for securities are quoted into the automated trading system, although transactions are not executed. These orders are added to others submitted in previous trading phases, which have not yet been executed. The duration of this phase of trade is 9-11 minutes.

Orders reaching the TACT system are checked for validity. Orders that contain errors or are not suitable for the trading phase are rejected and the submitter is notified. Valid orders enter the "order book" and a confirmation is sent to the submitter. 

Only LMT (limit) and ICE (Iceberg) orders orders may be submitted. Other types of orders will be rejected with notification to the submitter. Updating an order automatically cancels the original order. The updated order receives a new number and its priority is determined according to price limitation of the updated order, and the time the update was made. 

Minimum order size is: 1 share, one trading unit of a warrant, ILS 1 of nominal value for bonds, MAKAM and convertible bonds.

During this phase, a price and trading turnover determined as if the closing auction of the closing price had taken place at the time of the calculation, is published separately for each security ("theoretical closing auction price" and "theoretical closing auction turnover").

The system recalculates the theoretical closing auction price and turnover following each new quote in the trading system in addition to any cancellation or order update.

5) At the closing price
During this phase, trading takes place for trades transferred from the continuous phase and for new orders. All orders are executed ”at the Closing Price” (ATC) only. ATC orders, if not executed in this phase, are cancelled. GTC orders not executed in this phase are transferred to the next trading day.

5) TACT- Closing Auction
During the closing auction phase, a call auction is carried out for each security separately, during which time a price (closing auction price) is determined. During the closing auction phase, transactions based on orders submitted during the pre-closing phase are carried out according to the closing auction price. When the process is completed, the closing price is determined. The closing auction price may be different than the closing price. 

From July 29, 2007 a Closing Auction takes place during at Closing Price. Similar to the Opening Phase, the Closing Auction concentrates a large quantity of buy and sell orders at trade day end leading to a price which better reflects the security's value. Prior to the Closing Auction, a Pre Closing Phase will take place (similar to the Pre Opening Phase) for a period of ten minutes. During this time buy and sell orders for the Closing Auction will be placed and theoretical prices, which reflect the foreseen prices, will be published based on the orders submitted although not yet executed.

The MTS system began operation on September 3, 2006. The system is limited to primary dealers who have been approved by the Ministry of Finance to operate as market makers. In the initial period of the system's operations, only one type of Israel Government bond was traded, the non-linked Shachar Bond. The system now encompass the trading of all Israel Government bonds. 

The primary ramification of the MTS system's operation in Israel is that all Israel government bonds settle both securities and cash on T+1, i.e. true DVP/RVP.

Trading hours on the Tel Aviv Stock Exchange are Sunday through Thursday as specified below (start of each trading phase).

Please see below the link to the trading schedule in TASE website: https://info.tase.co.il/Eng/trading/trading_schedule/Pages/trading_schedule.aspx 

ISIN (International Securities Identification Numbering): Yes

Other: TASE internal numbering system.

Securities listed on TASE are typically dematerialised. Physical securities are very uncommon in the market.

Please note:

Please note:

The TASE will halt trading in a company’s shares for 30 minutes when a company releases price sensitive information in order to ensure the reports are widely disseminated.

Should a potential execution price breaches a certain threshold set for that security, trading in that security is suspended temporarily for 5-6 minutes. By using a temporary suspension of trade, investors are given time to assimilate incoming information and the ability to make informed choices during periods of high market volatility.

Market participants and local investors settlement period is T+1 for cash and securities.

Foreign institutional investors typically arrange the settlement of equities directly with local brokers for TD+1 or TD+2, with cash settlement on SD.

For government and corporate bonds, securities and cash settle on T+1 for all investors.

ILS

Block trades are typically traded over-the-counter and are reported and cleared through TASECH. 

OTC trades are cleared through the TASECH if two different TASE members are involved. If the two involved customers in an OTC trade are both customers of the same TASECH member, the settlement is not processed by the TASE but the member must report the trade to the TASECH.

Note: A transfer of equities between two distinct legal entities, executed more than one or two days after the original trade date, is considered to be an "off-the-market" (OTC/OTM) trade and must be cleared via TASECH as an OTM transaction (either free or against payment) with full disclosure to TASECH. 

Off the market trading occurs, when two investors agree to the purchase/sale of securities, usually involving blocks of shares larger than those available on the market. The price of the transaction is determined by, and agreed to, by the involved parties without placing the sale and buy orders on TASE through a local broker.

It must be emphasised, that a settlement of securities between two different legal entities is considered by the TASE to be an “Off the Market” transaction. The only exception would be if a customer, an international broker, purchases a security in the market and transfers it to the ultimate customer within 24 to 48 hours. This is considered to be an ordinary settlement and charged at the agreed settlement fee (which is a flat fee). The reason for the exception is that the TASE recognises that it is the nature of an international broker's business to purchase securities on behalf of his client, and then transfer the security after its purchase.
Comment: All OTM trades are currently billed as flat fees.

However, if an international broker were to purchase a security and hold it longer than the period noted above, the initial purchase would be considered to be for the broker's Nostro (proprietary) account. Any subsequent transfer to end customer, would be considered as “Off the Market” (sales from Nostro) transactions.

An “off the market trade” would have to involve only securities that are listed for trading on the TASE. Listed derivatives cannot be traded “off the market”.

Book-Entry: There are several trade scenarios. The outline below will detail the most common trade settlements. The below scenario is applicable to equities and bonds.Securities and cash settle on T+1. Foreign investors may arrange with local brokers to settle on T+2, with cash settlement on SD. 

TD:

SD:

Short selling is permitted provided that a corresponding securities lending transaction is in place to cover the short position, in accordance with the Tel-Aviv Stock Exchange Rules.

Same day turnaround settlement is possible provided that both instructions are received within the market deadlines.

Tel Aviv Stock Exchange Clearing House (TASECH) - clears securities and the cash component of all securities transactions through the RTGS System by debiting / crediting the members' accounts at the Bank of Israel.

Derivatives Clearing House (MAOF) - responsible for clearing options and futures traded on TASE. The MAOF Clearing House was founded in August 1993 as a separate legal entity. Like the TASE-CH, it functions as a department of the TASE at the same address. It is an automated system that clears options trades by matching opposite sides as requested by MAOF members in a manner similar to that used by the Chicago Mercantile Exchange. The MAOF Clearing House handles only primary market trades. Currently the MAOF Clearing House has 9 members, all of them banks.

Tel Aviv Stock Exchange Clearing House (TASE-CH)

The Tel Aviv Stock Exchange Clearing House Ltd. was established in 1962 by members of the TASE as a separate legal
entity. In practice, however, it functions as a department of the TASE and has the same address. The TASE-CH is regulated under the Companies Law (1999), the Securities Law (1968) and the Joint Investment Trust Law (1994). The Israeli Securities Authority regulates the activities of the TASE and TASE-CH.

The TASE-CH is responsible for the clearing of all market instruments, except options. Of the 28 members of the stock
exchange, 22 belong to the TASE-CH. Those members who do not belong use the clearing services of other members. It should be noted that the Clearing House can handle only primary market (broker-to-broker) trades and not secondary market trades (broker-to-investor).

The TASE-CH settles and clears transactions between Sunday and Friday. Saturday is the weekend in Israel.

BIS is an international organisation which fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability. The Committee on Payments and Market Infrastructures (CPMI) uses three common structural approaches, or models, to categorise the links between delivery and payment in a securities settlement system.

Not applicable in this market.

Book-Entry: The settlement cycle for trades executed on the TASE is TD+1=SD for market participants and local investors. Foreign investors typically settle on T+1 or T+2. To support this short settlement cycle, all tradeable shares are immobilised. Government bonds are both immobilised and dematerialised. All securities that are eligible to be traded on the TASE are registered in the name of one of four nominee companies; three that are wholly owned subsidiaries of Israeli banks and one nominee company that operates as a subsidiary of the stock exchange. Trade settlement is performed by the TASECH and is paperless. TASECH maintains book-entry records which are updated daily to reflect trading activity. TASECH does not store any physical certificates. 

While there are no nominee companies per se for government securities, the Bank of Israel serves this role for T-Bills (MAKAM) and the Ministry of Finance for government bonds. Government bonds with a maturity of more than 13 months, are registered in the name of the Ministry of Finance (MoF), in the capacity of a nominee, and Makams and treasury bills, with maturity of up to 13 months, are registered in the name of the BoI, in its capacity as a nominee. Certificates must be re-registered into the name of a nominee company (book-entry) before they are eligible to be traded. This process can take between two to four weeks. No charges are applied for certificate deposits. Withdrawals of certificates are no longer possible in the market.

In the Israeli market, there is only one option for the legal registration of legal title to securities. There are four approved nominee companies in the market, three that are wholly owned subsidiaries of Israeli banks (Bank Hapoalim Ltd, Israel Discount Bank Ltd and Tefahot Mizrahi Bank Ltd) and one nominee company that operates is a subsidiary of the stock exchange.

Physical: Not applicable. All tradeable securities must be registered in the name of one of the four Nominees. As noted above, all shares eligible for trading are immobilised and changes in ownership are recorded in the books of the members as book-entries. The physical certificates of the securities that are registered to the various nominee companies are stored in the vaults of the parent commercial banks. Effective from January 24, 2010, physical certificates can no longer be issued.

The secretary of each company issuing shares is responsible for registration. 

Government Bonds are registered in the name of the Nominee Company at the Bank of Israel, but they are dematerialised and a beneficial owner cannot request to obtain a physical certificate of a G-Bond.

Not applicable for securities in book-entry form.

Shareholdings in this market may be required to be disclosed by the beneficial owner, particularly when such shareholdings reach or exceed prescribed disclosure limits. Investors must ensure that they comply in full by reporting such holdings to the appropriate organisations for this market, within the timeframe required. If you have any questions regarding this issue we encourage you to consult your legal counsel.

Failure to comply with the reporting requirements in this market may lead to penalties and / or other sanctions.

Ownership of 5% or more of a company (which makes the investors an "interested party" as defined by the Securities Law 5728-1968) must be disclosed to the company by the investor. The company is then responsible for informing TASE and the Israeli Securities Authority. The disclosure requirement also applies when ownership falls below the 5% threshold (disclosure requirements apply to both domestic and foreign investors).

For Bank of Israel reporting requirements for Debt instruments (Israel Government bonds with time to maturity of less than one year and T-bills/Makam), please refer to the FX Regulations section of the market Profile.

Rules of the Tel-Aviv Stock Exchange Clearing House (TASECH) provide for buy-in only with regard to on-exchange transactions (including MTS-Israel transactions). Nevertheless, since the rules require that the seller verify possession of the securities to be sold prior to execution of the transaction, fails are uncommon and buy-ins do not normally occur.

Custodians will be notified of a failed trade by the TASECH before a buy-in is initiated, and the custodian will inform the client accordingly. According to the TASECH rules, buy-ins will be initiated on T+4 for all securities.

The buy-in calculation will be performed based on the amount equal to the market value of the failed position plus a specified haircut.

For OTC transactions, there is no automatic buy-in.

Securities lending is permitted. At present, TASECH is not a party to the lending transaction. TASE rules prohibit intentional short selling unless there is a lending / borrowing agreement in place prior to the short sale. TASE regulations require that all intentional short sales not covered by a securities lending agreement, be covered within 24 hours of the creation of the short position.

The regulations for short selling and securities lending appear in the TASE and TASECH regulations. As noted above, TASECH is not a party to securities lending transactions. These are concluded between members and their customers or between two customers directly. All securities lending agreements must be reported to TASECH , whether they are transacted directly between two end customers without the involvement of the local custodians, or whether the lending is from the custodian.

The requirement to report stock borrowing transactions applies only in the event of short positions at the borrower's account. If borrower and lender made an agreement overseas and the lender delivers shares to the borrower's account, the borrower is not in short position, and in this case- the borrower's local custodian does not need to report the transaction to TASECH as borrowing transaction.

Both the Tel Aviv Stock Exchange Clearing House and the MAOF Clearing House have established Risk guaranty funds, as outlined below:

Tel Aviv Stock Exchange Clearing House:
The TASE, as of March 1, 2002 has established a fixed amount guarantee fund that replaced the open value guarantee provided by each member. The value of the fund is based on the proportional value of each member's volume for the previous year. The fund value is updated quarterly (15.01, 15.04, 15.07, 15.10). The value of the fund as of March 31, 2021 is ILS 1,615.3 Million (at least 25% in cash).

The Knesset (Parliament) of Israel legislated the Prohibition on Money Laundering Law of 5670-2000 and the Order Prohibiting Laundering Money of 2001.

The laws noted above, legislate the procedures that must be followed to identify customers and prevent the illegal acquisition of assets through the use of laundered funds. Violations of the laws are criminal offences.

This is an FII market. Please contact your RBC Investor Services' Client Manager before making portfolio investments.

Foreign investors may trade all listed securities (shares and bonds) without restriction as the requirement to fund investments from foreign currency in TASE has been withdrawn. 

There are restrictions on foreign ownership of some companies in the sectors of communication, infrastructure, airlines and security industries (usually, the restrictions are not absolute prohibition on foreign ownership but rather restrictions regarding the holdings percentage by foreign entities). 

In addition, with respect to several types of companies there are restrictions on holdings of the means of control, regardless of the owner's citizenship. Such restrictions are set out in laws and regulations and they include, among others: banks, insurance companies, infrastructure companies, and managing companies of certain financial products. Holding over a certain percentage of the means of control of such companies requires a prior approval from the authorised regulator. Occasionally, when the relevant regulator considers whether to approve the holding of the means of control he might consider the foreign entity's citizenship and/or business activity that the entity has in other countries.

The threshold limit for banking corporation is 7.5% for institutions managing customers' funds, including provident funds, insurance companies, mutual funds and exchange traded notes.

There is no restriction on repatriation of income and proceeds of sales of securities.

The proceeds of investments in the Tel Aviv Stock Exchange (TASE) can be repatriated without limitation as follows:

1. Investing in Israeli equities - listed and non-listed (principal, capital gains, and dividends).
2. Corporate and Government Bonds - (principal, capital gains, and interest income).
3. Mutual funds.
4. Derivative market.
5. Interest earned in interest-bearing ILS accounts.
6. Capital proceeds, and income derived from such investments, may be used to reinvest in Israeli securities, or repatriated.
7. Linked Shekel deposits.
8. Provident funds.
9. Savings accounts.

Foreign currency regulations require that in all cases where a financial transaction is effected in either foreign currency or ILS, between an Israeli resident and a foreign resident, it is obligatory on both parties to advise the financial intermediary, who executed the transaction, of the transactions' nature. The above disclosure is required for reporting purposes. It is further stipulated that both parties to any transaction must disclose the nature of the transaction. If the nature of the transaction is not disclosed to the bank, use of the funds deposited or transferred shall be restricted until such time as the nature of the transaction is disclosed.

The Bank of Israel (BOI) has issued new regulations for local and foreign investors to report derivative transactions in foreign currency and transactions in options with financial intermediaries whose gross cumulative nominal value is equal to USD ten million or more in one day. In addition, foreign investors will be required to report debt instruments activity exceeding ILS ten million in one day.

Reportable instruments are as follows:

• Foreign exchange (FX) products - swaps and forwards of more than three days, options and cross currency swaps.
• Debt instruments - Israel Government bonds with time to maturity of less than one year and T-bills/Makam.

The new reporting requirements will apply to FX products and debt instruments effective from July 1, 2011, and are defined according to the client classification:

Financial Intermediaries 
Financial intermediaries (FI) are required to report within two business days of trading day via the dedicated, secure reporting site. One-time registration is required prior to entering this reporting site. The FI reporting requirements are only triggered by transactions with its clients and not with other FIs.

FI is defined as any one of the following:

• Local banking corporation.
• Member of the Tel Aviv Stock Exchange.
• Person or entity engaged in buying or selling foreign currency against Israeli currency or debt instruments on behalf of others, and has an account with a local banking corporation or member of the stock exchange for such activity, also with respect to transactions not carried out through that stated account.

Investors 
Investors are required to report directly to the BOI via email on a daily basis. The report should include all trades that meet reporting thresholds. For example: investor traded three deals vs. three different institutions on the same trading day and the aggregate trading amount crosses the reporting threshold, the investor's report should include all three deals and the counterparty. Investor is defined as all others with activity in the subject instruments (excluding global custodians). 

Effective from July 1, 2011, reporting is required for specified ILS FX trades (not including spot trades) and government debt instruments with maturity of less than one year.

For the required document formats and further information please visit the BOI website. 

NB: All client types should maintain a record of applicable buy/sell positions starting July 1, 2011, even if time to maturity is more than one year. According to the Order, once an instrument, which was bought after July 1, 2011, enters the reporting threshold it should be reported. 

Please note that an institution that engages in the custody of securities only, such as RBC Investor Services, is not a financial intermediary under the reporting order and does not have an obligation to report.

The Bank of Israel implemented a Real Time Gross Settlement (RTGS) system on September 3, 2007. From this date interbank payments are cleared in real time throughout the day and will be irrevocable and final. The system is used for all interbank payments denominated in ILS. There is no minimum or maximum amount and each transfer will be settled individually.

However, any cash transfer between two local banks with an amount from 3 million ILS and up must be processed through RTGS, unless there is a justified reason that the local bank cannot send it to RTGS and in this case- he can still route it to MASAV (the interbank cash clearing system, which processes the payments at the overnight batch run and not intra-day.

The Bank of Israel requires that cash transfers of ILS 3 million or more to non-financial beneficiaries via MT103 instructions and the beneficiary maintains their ILS account at a local bank, must be routed to the RTGS system. Therefore, the beneficiary's IBAN must be included in the MT103. 

In March 2008, the CLS bank began operation in Israel and the ILS was added to the currencies that are cleared through the CLS system. The CLS Bank operates through the Bank of Israel. This development reduces drastically the exposure to currency conversions.

Overdrafts are permitted in cash accounts.

Income Entitlement:

• The entitlement to an income / event derives from the investor's holdings as at Record Date ("RD"). In Israel, RD is equal to Ex-Date.
• All settled trades until and on RD are entitled to the income / participate in the voluntary event.
• Trades executed prior or on RD but settled after RD, will enter a claim process.
• All securities purchased after RD are not entitled to the event.

Market Processing:

• When a listed company distributes a dividend or other payment (stock dividend, interest etc.), it sends an authorisation to the relevant Nominee Company, who handles the issuing company's shares/bonds to debit the issuing company with the income determined.
• The Nominee Company calculates the cash / stock dividend due to their Bank's clients and credits the clients on Pay date.
• Nominee Company then credits the Clearing-House with the remaining cash due to the other TASE Members' clients holding the same security.
• Clearing House credits all the other members' cash accounts also on pay date, automatically, based on their holdings as of record date.
• The Clearing-House members then credit their clients' accounts same day value. This means, that if the security is settled with us, the customer's account will be automatically credited with all due entitlements on payment date. Client, who traded prior or on RD, is entitled to the event / income. However, if said trades settled after RD, the entitlement is subject to claim, as they were not recorded as the owner of security on RD.

Determined by each paying company.

Quarterly, semi-annual, annual.

Actual/365-day basis.

The main source of corporate action information is the internet information bulletin of the TASE (MAYA).

For bonus shares, the paying company announces the ex date and the distribution date. Bonus shares are distributed by the TASE.

If an original purchase transaction was executed in the market before or equal to Record Date, but the trade has settled after Record Date, the transaction enters into a claim process.

There are no restrictions on foreign investors to vote by proxy.

Shares are not blocked. Each company sets a record date for the meeting. The number of shares in the customer custody account as of the record date can be voted at the meeting. Entitlement is calculated on settled positions. There are no restrictions on trading in the shares after the record date. 

However, bonds are blocked upon acceptance of the voting application by TASE and remain blocked until the day following the meeting, or any adjournment held within 10 days afterwards, or until the date the bank receives a cancellation order from the instructing party.

Companies are required to convene annual general meetings (AGMs) and are subject to strict disclosure rules as set out in the securities regulations and the companies law. Meeting notices and agendas are translated into English by RBC Investor Services' subcustodian in Israel. There is no set frequency for the announcement of AGMs and extraordinary general meetings.

Available.

Not available. In any case, company reports are written in Hebrew, and would not be helpful for foreign institutional clients.

Required for share holders meetings. In addition to the POA a certificate of ownership must be issued by the subcustodian in order to exercise the voting rights.

Not applicable.

The custodian withholds the applicable tax on dividends. The standard withholding tax rate for foreign investors is 25% on dividends.

Efective January 1, 2022, Oil and Gas Limited Partnership distributions will be treated as regular dividends subject to default WHT of 25%.

0% (except for redemption of short-term government bonds subject to 23%)

Foreign investors are generally exempt from CGT in Israel, except on MAKAM (Treasury Bills) and REIT investments. 

Non-resident investors are subject to 23% CGT on sales proceeds derived from short term government bonds and MAKAMS issued with a maturity date of no more than 13 months from the date of issuance. 

Investment in REIT securities is subject to CGT of 23%.

The custodian withholds the applicable tax. Foreign investors are exempt from CGT on all other instruments traded on TASE.

Not applicable.

Not applicable.

ISRAEL Holiday Calendar

• Tel-Aviv Stock Exchangetase.co.il
• Bank of Israelbankisrael.gov.il
• Ministry of Financemof.gov.il/englishframe.htm
• Israeli Securities Authorityisa.gov.il
• Ministry of Financemof.gov.il