The move has become pressing as firms increasingly buy back their bonds.
The Israel Securities Authority has formulated new directives that require companies to publish immediate reports when they buy back bonds. The measure comes as companies are increasingly buying back their bonds.
In April, "Globes" revealed that a legal loophole allowed companies and parties at interest to buy or sell their own corporate bonds without reporting the transactions to shareholders. In effect, a company or a party at interest in it could legally use insider information to make handsome profits, without anyone being the wiser.
Many companies nonetheless chose to disclose their bond buy-backs, but such announcements were left to their discretion.
The Securities Authority has now published formal directives on the matter. The draft directives stipulate that a company must publish an immediate report on the sale or purchase of bonds. The new guidelines are due to come into effect in a few days.
Published by Globes [online], Israel business news - www.globes-online.com - on November 27, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008