The Securities and Exchange Board of India (Sebi) on Monday tightened the procedural guidelines for proxy advisory firms.
The new norms are aimed to bring in more transparency, avoid conflict of interest, and give companies a chance to provide their viewpoint. Proxy advisors are firms that give voting recommendations on resolutions floated by companies to their clients, who are typically institutional investors, such as mutual funds and private equity.
Experts said the new guidelines will put a greater onus on proxy advisors, which over the years have gained clout when it comes to influencing how shareholders vote on key resolutions floated by