class="MsoNormal" style="text-align: justify;">The Securities and Exchange Board of India (SEBI) on March 05, 2021 has issued a circular for the guidelines for votes cast by mutual funds. This circular shall come into force from April 01, 2021.
The following guidelines have been given:
• Mutual Funds including their passive investment schemes like Index Funds, Exchange Traded Funds etc. shall be required to cast votes compulsorily.
• Further, for all remaining resolutions which are not covered at Para 1 of this circular, Mutual Funds shall also compulsorily be required to cast their votes with effect from April 01, 2022.
• In case of the Mutual Funds having no economic interest on the day of voting, it may be exempted from compulsorily casting of votes.
• The vote shall be cast at Mutual Fund Level. However, in case Fund Manager/(s) of any specific scheme has strong view against the views of Fund Manager/(s) of the other schemes, the voting at scheme level shall be allowed subject to recording of detailed rationale for the same.
• Fund Managers/Decision makers shall submit a declaration on quarterly basis to the Trustees that the votes cast by them have not been influenced by any factor other than the best interest of the unit holder.
• Further, Trustees in their Half Yearly Trustee Report to SEBI, shall confirm the same.
[Circular No. SEBI/HO/IMD/DF4/CIR/P/2021/29]
