Investor Relations is the communication of information and insight between a company and the investment community. This process enables a full appreciation of the company’s business activities, strategy and prospects and allows the market to make an informed judgment about the fair value and appropriate ownership of a company.
The important actor of Turkish capital markets, Borsa İstanbul will become a listed company after its own IPO, planned to take place in 2017 or in 2018. As a consequence, it will have to comply with the legal framework determined by Capital Markets Board of Turkey regarding the listed companies.
Part IV Article XI of Communiqué on Corporate Governance (published in the Official Gazette dated 3 January 2014 and numbered 28871) issued by Capital Markets Board of Turkey, obliged public companies to have an Investor Relations Department. According to Clause V, main duties of the department are:
a) To ensure that the records relating to the correspondence between the investors and corporation and any other information or documents thereof are kept proper, secure and up-to-date.
b) To respond to the written information requests of the shareholders regarding the corporation.
c) To prepare the documentation with respect to the general assembly meeting required to be submitted to the shareholders for their information and review and to take the measures in order to ensure that the general assembly meeting is conducted in accordance with the legislation, articles of association and other internal regulations.
d) To supervise and pursue that the liabilities arising from the capital markets legislation including any matters with respect to corporate governance and public disclosure are fulfilled.
Borsa İstanbul is not yet a public company, and consequently not required to have a Investor Relations Department. The exchange will become public through an IPO. To be in compliance with Corporate Governance rules even prior to the IPO, a preliminary step was taken and Strategic Planning and Investor Relations Department was established in 2014. As of end of 2016, Investor Relations duties are performed by Strategic Planning and Investor Relations Division under Corporate Communication Department.