On Tuesday, 4th August 2020 the Market regulatory said that Listed Company can approach SEBI to resolve grievances against proxy advisors, who advise shareholders on corporate governance issues and assist them with a voting recommendation.
According to the Securities and Exchange Board of India (SEBI), this will be applicable from 1st September 2020. The regulator noted that proxy advisors, over the past few years, have played a key role in enabling shareholders to effectively participate in corporate governance decisions Proxy advisors provide advice to institutional investors or shareholders of a listed entity, in relation to exercise of their rights in the company including a voting recommendation on agenda items.
SEBI said, 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. The Regulator added, “In order to facilitate the resolution of such grievances of listed entities against SEBI registered proxy advisors, the listed entities may approach SEBI.” The SEBI will examine the matter for non-compliance of proxy-advisors with the provisions of the code of conduct specified under Research Analyst Regulations and the procedural guidelines for proxy advisors. On Monday, 3rd August 2020 SEBI came out with procedural guidelines for such advisors. Under the guidelines, they have to formulate the voting recommendation policies and disclose the updated voting recommendation policies to clients. The proxy advisor firms ensure that the policies will be reviewed at least once annually. The voting recommendation policies will also mention when not to provide such recommendations.
SEBI Imposes Fine of Rs. 45 Lakh on Three Individuals for IPO Fund Diversion
Executive
Nov 23, 2020
Parul Singhal
(
Editor: Ekta Joshi
)
4 Shares
SEBI on Friday (20th November 2020) slapped Rs.45 lakh rupees in fine on three individuals for diverting proceeds from the Initial public offer of paramount print packaging Ltd (PPL) and making wrong disclosures. Individual fine of Rs 15 lakh each has also been imposed on Divyesh Ashwin Dharmesh Ashwin and Anuj Vipin as per the said order. According to the order, PPL as a company had mis-utilised Rs 35 crores and diverted Rs 34 crores to nine vendors. The three individuals provided wrong...
Sahara’s Subrata Roy Must Pay Rs. 62,600 Crores or Spend His Time in Jail: SEBI to Supreme Court
Business
Nov 21, 2020
Atharwa Gauraha
(
Editor: Ekta Joshi
)
10 Shares
On Friday (November 20, 2020), the Securities and Exchange Board of India (SEBI) sought the Supreme Court's instructions to revoke the parole and take custody of Sahara Chief Subrata Roy for his alleged failure to return money to his investors. The SEBI demanded Rs. 62,602 crores from Sahara, which it had received previously.Meanwhile, the Sahara group has claimed that SEBI was “acting biased” and is raising a “wrong demand” by asking for Rs 62,602 crores or $8.48 billion.“It is...
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