SEBI directs AMCs to appoint scrutinisers to review voting rights
Aug 11 2016
News Category: Industry Update
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In an attempt to render active voice to the retail investors on important decisions of the Asset Management Companies (AMCs), the Securities & Exchange Board of India (SEBI) has directed such AMCs to appoint scrutinisers to review the rationale of voting rights exercised by them. Accordingly, AMCs shall be required to obtain certification from the scrutiniser on the voting reports being disclosed by them. The underlying idea is to ensure that the AMCs have voted on important decisions that may impact the interest of investors and the rationale recorded for vote decision is prudent and adequate. A scrutiniser can be a chartered accountant, cost accountant, a company secretary or an advocate, but not in employment of the AMC and is a person of repute who, in the opinion of the Board, can scrutinise the e-voting process in a fair and transparent manner.

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