The Securities and Exchange Board of Indian vide its notification dated 27th August 2020 has extended the timeline for implementation of procedural guidelines for proxy advisors to 1st January 2020.
As per the procedural guidelines, proxy advisors will formulate the voting recommendation policies and disclose the updated policies to clients.
Proxy advisors will have to ensure that the policies should be reviewed at least once annually. The voting recommendation policies shall also disclose the circumstances when not to provide a voting recommendation, as per the norms.
SEBI has also made it mandatory for the proxy advisors to share their reports with their clients and the company at the same time, among other requirements.
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