Stewardship code to nudge institutional shareholders to turn active

Sebi has been pushing mutual funds to vote on shareholder resolutions since 2010

The Uday Kotak-led committee on corporate governance's proposal to put in place a common 'stewardship code’ might compel Life Insurance Corporation of India (LIC) and top mutual funds (MFs) to play a more active role in this regard. 

At present, there is no specific provision for such a code under Securities and Exchange Board of India (Sebi) regulations. For MFs, some stewardship principles have been adopted, such as on voting and conflict of interest. In March, the Insurance Regulatory and Development Authority of India (Irdai) issued a stewardship code for companies in its ambit.
 
“Over the years, disclosure on the