Sebi lays down stewardship code for MFs, alternate investment funds

Wants investors to play more active role in improving corporate governance

The Securities and Exchange Board of India (Sebi) on Tuesday issued the stewardship code for mutual funds (MFs) and alternative investment funds (AIFs), which they would be required to follow to improve corporate governance standards in their investee companies.

The code has laid six principles under which MFs and AIFs are required to adhere to when dealing with their investee companies.

Among the requirements, the investors shall have a clear policy identifying the circumstances for active intervention in the investee companies and the manner of such intervention.

“The policy should also involve regular assessment of the outcomes of such intervention.