The ISA was established pursuant to the Securities Law 5728-1968.
Its mandate is to protect the interests of the public investing in securities, as stipulated in the Law. Pursuant to this mandate, the Authority covers, among others, the following areas:
Supervising public securities offerings.
Granting permits to publish prospectuses, which enable corporations to offer securities to the public, and mandating disclosure of material information by listed companies.
Monitoring public company disclosure through periodic reports that each company must file after issuing securities to the public through a prospectus or having their securities traded on the TASE, a directors’ report on the status of the corporation’s affairs, information reports, quarterly and annual financial reports, and immediate reports, which are filed immediately after the occurrence of certain events that could have a material influence on the corporation or on the price of its securities, as long as the securities are held by the public. Reports must be filed with the ISA, the TASE, and the Registrar of Companies.
Reporting requirements are enforceable by the Israeli courts upon the petition of the ISA, which also has certain powers to direct the TASE to suspend trading of a company’s securities.