The Securities and Exchange Board of India vide its notification dated 27th August 2020 has extended the time line for implementation oif its earlier circular on grievance resolution between listed enitites and proxy advisors to 1st January 2020.
The Proxy advisors, over the past few years, have played a key role in enabling shareholders to effectively participate in corporate governance decisions and has provided advice to institutional investors / shareholders of a listed entity, in relation to exercise of their rights in the company including voting recommendation on agenda items.
However, due to the inherent nature of the work, it is probable that proxy advisors and listed entities may have different views on any agenda item of the listed entity leading to grievances.
In order to facilitate resolution of such grievances of listed entities against SEBI registered proxy advisors, the listed entities may approach SEBI. SEBI will examine the matter for non-compliance by proxy advisors with the provisions of the Code of Conduct under regulation 24(2) read with regulation 23(1) of the SEBI (Research Analyst) Regulations, 2014
The above circular issued on 4th August was scheduled to come into effect from 1st September but the regulator has further extended the timeline for its implementation by four months to January 1, 2021.
