SEBI is seeking to position itself as a grievance redressal body in respect of grievances between listed entity and proxy advisers. More often than not, proxy advisers get into conflict with the listed company with their recommendations to the shareholders on matters affecting them i.e. the shareholders. SEBI has a system of registered proxy advisers and then there are Research Analysts who also provide advice.
So SEBI will examine any matter of non compliance by proxy advisors with the regulations affecting them and whether there has been any violation of the code of conduct impacting them.
This will come into effect from 1st September, 2020. This will be interesting to see how it peters out. But SEBI role in this appears to be limited to examining any non compliance with the regulations and the code of conduct.
Copy of SEBI circular can be found here