Chandresh Nigam, MD & CEO, Axis MF heads the committee.
AMFI has constituted an advisory committee comprising chief investment officers to form a consensus on taking a stand in company voting.
The committee is headed by Chandresh Nigam, MD & CEO, Axis MF.
HN Sinor, CEO, AMFI said, “The number of members is not fixed. Any fund manager can join this committee.”
However, the final decision to vote in favour or against a company resolution would be the prerogative of the respective fund house. “AMFI has formed this committee to discuss voting options before any crucial decision of company in order to protect the interests of minority shareholders. The opinion of the committee in not binding on the AMC,” said a CEO of a bank sponsored AMC.
SEBI has tightened its vigilance to make sure that AMCs are exercising their voting rights to protect the interests of mutual fund investors. Earlier this year, SEBI had asked fund houses to share the rationale behind casting vote for or against any matter on their websites. Also, AMCs are required to disclose their general policy of voting and the actual exercise of their proxy votes in the AGMs/EGMs of the investee companies.
AMCs are required to obtain a certificate from auditor on the voting reports annually. This report has to be submitted to the trustees and published in the annual report and website of AMCs. SEBI had also asked the trustees and boards of AMCs to monitor and ensure that the votes cast by AMCs are prudent and adequate.
Last year, a InGovern ‘Mutual Funds Pattern 2013 Analysis’ report showed that majority of fund houses had either voted in favour of proposals or had decided to largely abstain from voting in the resolution put forth by the investee companies.
The report found that fund houses were passive or indifferent while voting at investee company shareholder meetings. In fact, two AMCs had not made any voting disclosure in FY 2012-13 since they completely abstained from voting exercise, the report added.
