proxy advisors

SEBI circular dated 31st December, 2020 making some amendments in the guidelines to proxy advisors.

  1. In partial modification to SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/147 dated August 03, 2020 and SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/157 dated August 27, 2020 on “Procedural Guidelines for Proxy Advisors”, the following has been decided:
    a. Clause 1(c) of the SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/147 dated August 03, 2020 is modified as under:
    “Proxy Advisors shall alert clients, within 24 hours of receipt of information, about any factual errors and any impending material revisions to their reports. Further, any such material revisions to their reports shall be communicated to the clients within 72 hours of receipt of the information, while ensuring that adequate time is available for clients to make an informed decision.”
    b. Clauses 1(c) and 1(e) of SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/147 dated August 03, 2020 shall be applicable with effect from February 01, 2021.
  2. All other conditions specified in the SEBI Circular No. SEBI/HO/IMD/DF1/CIR/P/2020/147 dated August 03, 2020 shall remain unchanged.

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