JERUSALEM, June 18 (Reuters) - An Israeli government panel on Monday called for the creation of a secondary stock exchange that caters to small and medium-sized businesses.
The new bourse will have less stringent requirements and regulation than the main Tel Aviv Stock Exchange, allowing smaller companies to raise funds from the public, according to a committee statement.
The committee recommended that companies be allowed to list with a post-fundraising valuation of up to 300 million shekels ($83 million). Bond offerings can be between 6 million and 36 million shekels.
It also called for the appointment of a sponsor to accompany companies through the initial public offering process.
New legislation for the formation of the secondary exchange will be brought to parliament by the end of July.
“Our job is to create the infrastructure and climate to increase activity in the capital market,” said Anat Guetta, chair of the Israel Securities Authority. “Raising capital through a secondary bourse will reduce dependency on the banking system and allow these businesses to develop and grow.” ($1 = 3.6292 shekels) (Reporting by Ari Rabinovitch; Editing by Tova Cohen)