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Sebi issues disclosure standards for proxy advisory firms

Sebi issues disclosure standards for proxy advisory firms

Securities and Exchange Board of India (Sebi) on Monday issued disclosure standards for proxy advisory firms, policy for managing conflict of interest, and asked them to give companies a chance to respond.

This is the first time the regulator has issued disclosure standards for such firms. So far, proxy advisory firms were registered under and governed by research analyst norms of 2014 which prescribed a code of conduct.

Proxy advisory firms provide institutional investors with research, data, and recommendations on management and shareholder proposals that are voted on at a company's annual meeting or extra ordinary general meetings. They also comment on governance practices in companies which helps institutional investors take investment decisions.

Sebi's mandate is based on an expert panel report which had recommended managing conflict of interest and ensuring independence

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