SEBI asks mutual funds to cast vote on all company resolutions
PrintListen to this Article
0:00
0:00
The Securities and Exchange Board of India (Sebi) on Friday said mutual funds including their passive investment schemes like index funds and exchange traded funds should cast votes compulsorily on all company resolutions.
The regulator said vote should be cast at the mutual fund level. However, in case fund manager of any specific scheme has strong view against the views of fund manager of the other schemes, the voting at scheme level will be allowed subject to recording of detailed rationale for the same.
Sebi said fund managers should submit a declaration on quarterly basis to the trustees that the votes cast by them have not been influenced by any factor other than the best interest of the unit holders.
Further, trustees in their half yearly report should confirm the same to Sebi.
Fund houses are required to cast votes on resolutions related to corporate governance, changes in capital structure, stock option plans and other management compensation issues, appointment and removal of directors, related party transactions, social and corporate responsibility issues.
The new rules will be effective from April 1.
The regulator said vote should be cast at the mutual fund level. However, in case fund manager of any specific scheme has strong view against the views of fund manager of the other schemes, the voting at scheme level will be allowed subject to recording of detailed rationale for the same.
Sebi said fund managers should submit a declaration on quarterly basis to the trustees that the votes cast by them have not been influenced by any factor other than the best interest of the unit holders.
Further, trustees in their half yearly report should confirm the same to Sebi.
Fund houses are required to cast votes on resolutions related to corporate governance, changes in capital structure, stock option plans and other management compensation issues, appointment and removal of directors, related party transactions, social and corporate responsibility issues.
The new rules will be effective from April 1.
Category : SEBI | Comments : 0 | Hits : 299
SEBI Mandates AIFs to Upload NAV Data on Depository Platforms To strengthen disclosure standards and streamline processes, the Securities and Exchange Board of India (SEBI) has instructed Alternati...
India's securities regulator has accused current and former executives at the local units of PwC and EY, among others, of breaching insider trading rules involving a 2022 share sale by Yes Bank, a...
A financial influencer, also known as finfluencer, who was also involved in imparting training related to stock market trading has been asked to part with a little over ?12 crore, which it made unlawf...
Comments