Israel regulator warns of cannabis bubble\, eyes Australia pact

ROUGH CUT - NO REPORTER NARRATION A special unit has been formed by the Israel Securities Authority (ISA) to ensure investors are protected and not being misled in the growing medical cannabis sector, agency chair Anat Guetta told Reuters.

Guetta also said Israel may expand its dual-listing arrangements to include Australia as it tries to connect with more foreign markets and draw investors to recover trading volumes lost a decade ago.

Medical cannibis is one of the fastest growing segments on the Tel Aviv Stock Exchange (TASE) and the sector got a boost in January when the government approved exports.

Cannabis stocks may be high, but overall trade volumes are sluggish and have not recouped the flows lost when MSCI upgraded Israel to developed market status from emerging in 2010.

To help lure new issuers, the bourse has forged dual-listing partnerships with markets in New York, Toronto, London, Singapore, and Hong Kong.