The existence of ongoing obligations and respective rules allows investors to be kept informed, and it is this information that enables investors to monitor at all times their interest (or lack of interest) in the Company. These obligations are intended to guarantee, in the first place, high levels of transparency that sustain the engagement of (current or future) investors with the business project, in the light of the development that it will undergo. Therefore, coming to the market should imply adherence to the rules which, in turn, imply adherence to a certain way of being, based on clarity, transparency and accountability, that is, in everything that manifests the idea of market culture.
The duties inherent to the maintenance of securities admitted to trading are, in essence, information disclosure obligations. These are are mainly divided in periodic information disclosure obligations (e.g. financial accounts, corporate governance reports, sustainability reports) and ad hoc information disclosure obligations (e.g. privileged information, qualified participations, managers’ transactions).
Having securities listed goes beyond regulatory matters, daily market performance and the capacity to raise more capital. To ensure its ongoing success, companies must continue to promote their businesses on an ongoing basis and become aware of how the market perceives the company, while meeting all the ongoing requirements to continue to be listed.
Companies view market listing as a milestone, but it is only the beginning, not an end in itself. The IPO/bond offering sets the start of a new journey, where companies commit to adopt a collaborative and transparent approach towards investors and seek to establish a lasting and value creating strategy based on inclusive, reliant and participated decision making processes.
Crucial factors for the success of listed Companies
► Clear and consistent communication
► Delivering what was promised to investors
► Regular and proactive contact with investors
► Management accessibility
As previously stated, the disclosure of information is crucial for the market stakeholders. For this reason, there are harmonised legal requirements that set the minimum standards for the information that must be disclosed. Besides the compulsory information, some listed companies also voluntarily choose to include additional information, since good financial communication between all market participants is effective to gain the trust of investors and earn credibility.
Transparency of publicly traded companies’ activities is vital for the appropriate functioning of capital markets. Investors need reliable and timely information about the strategy, the business performance and the corporate governance practices of the companies they invest in.
Below you can find what are the main ongoing obligations for listed companies:
For further information on further obligations related with MAR access the [Link].