During the grace period, companies can act to regain compliance in several ways, such as:

·      Selling shares of major shareholders to the public, in order to increase the public-float  value or rate.

·      Publishing a prospectus and raising capital, in order to improve the company’s equity and its public-float value or rate.

The TASE Board of Directors can  transfer to the Maintenance List securities, which did not regain compliance with the Maintenance Rules.

At the end of the grace period – shares. In addition to those shares, convertible securities that do not comply with the Rules will also be transferred to the Maintenance List.

The Maintenance List consists of companies' securities that do not comply with the Maintenance Rules. Trading  of securities on the Maintenance List is carried out in a limited format, with only two phases.

·      Pre-Opening – from 8:30 to 10:30 AM. At this stage, each submitted order is recorded in the order book, but no shares actually change hands on the TASE computer system.

·      Opening – Trading is conducted in a call market method. At a random time between 10:30-10:35 AM. The opening price for each share is the price which attracts the largest trading volume.

No further trading is carried out during the rest of the day.

The Maintenance List is displayed on the TASE website.

Every announcement by a company on the Maintenance List published on the TASE Internet Disclosures Site (Hebrew only) is marked by the word “Maintenance” after the company’s name.

After twelve months on the Maintenance List, the TASE Board of Directors may delist securities from the TASE. Delisting may be postponed at the company’s request, and the securities can remain on the Maintenance List for another year.

In order to return to the Regular List, the company must comply with higher quantitative requirements than those established in the Maintenance Rules. The longer the company is on the maintenance list the stricter are the requirements for its return to the Regular List. The requirements are adjusted after the first 12 months and are specified under the Resume Trading.

The amendments, that came into effect on May 1^st 2007,  will not apply to companies that, at the time of the inception of the rules, have already received notification of their noncompliance, as well as to the companies already on the Maintenance List or suspended at that time.

For these companies the requirements for a return from the Maintenance List to regular trading will be:

• Public-float value – at least 3.5 NIS million.
• Public-float rate – at least 10%.
• Shareholders Equity – at least 4 NIS millions 

The rules change after 12 months and 24 months.

The delisting of a security in the Maintenance List can be postponed for a period of 36 months.