Sebi asks proxy advisors to formulate voting recommendation policies

Markets regulator Sebi on Monday came out with procedural guidelines for proxy advisors, wherein they need to formulate the voting recommendation policies and disclose the updated one to their clients.

The new guidelines would come into force from September 1, the Securities and Exchange Board of India (Sebi) said in a circular.

"Proxy advisors shall formulate the voting recommendation policies and disclose the updated voting recommendation policies to its clients. Proxy advisors shall ensure that the policies should be reviewed at least once annually," Sebi said.

It, further, said the recommendation policies should also disclose the circumstances when not to provide a voting