The Securities Exchange Board of India vide its notification dated 30th March 2020 has extended the deadline till 1st July 2020 for implementation of stewardship code for all Mutual Funds and all categories of AIFs due to the COVID–19 pandemic.
SEBI had mandated all mutual funds and alternative investment funds in the country to adopt a stewardship code. Under the code, institutional investors need to monitor investor companies and intervene in these firms in case of any requirement through meetings with the management. Also, they need to have a policy on voting and disclose voting behavior.
Stewardship code is a principles-based framework that assists institutional investors in fulfilling their responsibilities to help them protect and enhance the value of their clients and beneficiaries.
Click here to read the Notification.
