INSUBCONTINENT EXCLUSIVE:
New Delhi: SBI Funds Management, a joint venture between India's largest bank SBI and European asset manager Amundi, on Tuesday said it
has adopted stewardship code which requires the fund house to monitor its investor companies and establish voting policies.
In doing this,
SBI Mutual Fund has become the first fund house to implement the stewardship code in India.
This is aimed at complying with markets
regulator Sebi's directive, which mandated all mutual funds and alternative investment funds in the country to adopt a stewardship code,
which is applicable for investments in listed equities
The code will come into force from April 1, 2020.
Under the code, institutional investors need to monitor investor companies and intervene
in these firms in case of any requirement through meetings with the management
Also, they need to have a policy on voting and disclose the voting behaviour.
In a statement, SBI Mutual Fund said the stewardship code
which they have adopted highlights the stewardship responsibilities undertaken by the fund house to actively monitor, engage with and
The stewardship code gives an insight into the AMC's strong ESG (environment, social and governance) integration initiatives and firm
(asset management company) shall continue to monitor and engage constructively with its investee companies on matters related to
