Sebi's expert panel proposes framework for proxy advisory companies

The recommendations made by the six-member panel headed by Sandeep Parekh, founder of Finsec Law, aim to manage conflict of interest and ensuring independence

An expert panel constituted by market regulator Securities and Exchange Board of India (Sebi) on Monday proposed a detailed framework for proxy advisory firms, who provide voting recommendations on resolutions floated by listed companies to their minority shareholders — typically institutional investors. The recommendations made by the six-member panel headed by Sandeep Parekh, founder, Finsec Law Advisors, are aimed at managing conflict of interest and ensuring independence.

The committee has also proposed more scrutiny of global proxy advisory firms, whose role and obligations while advising in case of domestically listed companies had come under question after their controversial recommendation on