In the past five years, similar codes have been implemented by other nations to ensure that institutional investors carry out their fiduciary duty towards their investors. The proposals included higher disclosure standards for institutional investors such as pension funds, insurance companies and mutual funds, the second person said, also requesting anonymity. Insurance companies, which are the largest domestic institutional investors, have a poor track record on voting. India urgently needs a stewardship code, according to Amit Tandon, managing director and founder of proxy advisory firm Institutional Investors Advisory Services (IiAS). How they represent the interests of those whose money they manage is dealt with through a stewardship code,” said Tandon.

Source: Mint March 05, 2017 22:44 UTC