Stewardship Code for all Mutual Funds and all categories of AIFs, in relation to their investment in listed equities
Summary
SEBI mandates that all Mutual Funds and Alternative Investment Funds follow the Stewardship Code for their investments in listed equities. The code requires institutional investors to formulate, disclose, and periodically review policies on stewardship responsibilities, conflict of interest, monitoring, intervention, voting, and reporting. These provisions are effective from April 1, 2020, issued under Section 11 of the SEBI Act, 1992.
Text
all Mutual Funds and all categories of AIFs shall mandatorily follow the Stewardship Code as placed at Annex A, in relation to their investment in listed equities.
The Stewardship Code shall come into effect from the Financial Year beginning April 01, 2020.
This circular is issued in exercise of powers conferred under Section 11 of the Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996 and Regulation 36 of SEBI (Alternative Investment Funds) Regulations, 2012.
Institutional Investors should formulate a comprehensive policy on the discharge of their stewardship responsibilities, publicly disclose it, review and update it periodically.
Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it.
Institutional investors should monitor their investee companies.
Institutional investors should have a clear policy on intervention in their investee companies... which should be disclosed.
Institutional investors should have a clear policy on voting and disclosure of voting activity.
Institutional investors should report periodically on their stewardship activities.
Source: SecMarx — Stewardship Code for all Mutual Funds and all categories of AIFs, in relation to their investment in listed equities. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.