The Bahrain Stock Exchange (Bourse) has issued the Investor Relations Best Practice Guide in line with its efforts to boost good relations among investors and transparency across listed companies.
The guide intends to highlight the importance of the investor relations function and the effect of implementing best practices in the valuation and assessing the competitiveness of listed companies in the market.
“The launch of the Investor Relations Best Practice Guide is another step towards promoting the importance of good investor relations practices across Bahrain’s capital market whilst enhancing corporate governance and transparency among companies in the Kingdom of Bahrain. The Guide aims to build long-term effective Investor Relations programs within listed companies to enable transparent communication between the company, investors, and analysts to foster efficiency and transparency.”
“The launch of the Investor Relations Best Practice Guide compliments Bahrain Bourse’s efforts in promoting investor relations in Bahrain’s capital market in collaboration with Middle East Investor relations Associations (MEIRA). The Investor Relations (IR) Best Practice Guide aims to provide a blueprint framework for listed companies to structure an effective IR program and strategy,” Marwa Al-Maskati, Director of Marketing and Business Development and Board Member of MEIRA, said.
Investor relations is the proper two-way communication of the relevant information between an issuer and the financial markets to make sure that the investment community is making an informed judgment about the fair value of an issuer’s securities.
The guide includes principles of investor relations, defines the operating and regulatory environment, and offers guidance on investor relations’ strategies following the best international practices. The Investor Relations guide also includes case studies from listed companies’ best practices.
In 2019, Bahrain Bourse and MEIRA officially launched the ‘MEIRA chapter’ in Bahrain to develop and enhance best practices in investor relations across the Kingdom. The stock exchange joined the MEIRA Board of Directors in December 2020.