Currently, the law requires all public companies to submit their annual and financial reports to the Israeli Stock Exchange in Hebrew, alongside any other languages they may choose. From now on, they will be able allowed to forgo the Hebrew report, a somewhat technical revision that the Securities Authority hopes will attract new international investors to the Stock Exchange in Tel Aviv.
Chairman of the Israel Securities Authority, Anat Guetta, called the decision "a simple revision that generates a significant change."
Guetta explained that a foreign company looking to invest in Israel today needs to invest money "in legal counselling, in a company secretariat and in translation services, which double the expenses," adding that the decision is "an important step in opening up the stock market to international investors."
While the Securities Authority does not expect many request by companies to change to English as their preferred language, it has already noted new companies expressing interest in investing in the Israeli Stock Exchange, once the language barrier is lifted.
Chairman of the Finance Committee, MK Moshe Gafni, said that he respects the "position of experts" on the matter but also noted his reservations.
"Let the records show that at this point in time we are doing what's necessary and practical for opening up the Israeli market, but we're also putting an asterisk next to the decision to remove Hebrew and to allow those interested to report in English," Gafni said during discussions.
The revision was unanimously approved and will take effect in three months' time.