On July 29, 2019, the Securities and Exchange Board of India (“SEBI”) issued a report submitted by the Working Group it formed in November 2018 to review certain issues related to proxy advisors. The report focused on three areas:

  • provisions pertaining to proxy advisors already included in existing regulation, notably the SEBI (Research Analysts) Regulations, 2014.
  • rights and obligations of proxy advisors, including the need to establish clear policies and demonstrate their independence.
  • other matters relevant to proxy advisors, such as the framework for resolving disputes with corporate issuers, etc.

The report also considers further actions, including the extension of existing regulation of domestic proxy advisors to foreign firms, and the implementation of a stewardship code for institutional investors.

SEBI sought input from stakeholders, and Glass Lewis welcomed the opportunity to share our views. You can download our submission to the consultation below. For more information, contact info@glasslewis.com.