SEBI has clarified that listed companies can approach it to resolve grievances against proxy advisors, which make recommendations to shareholders on corporate governance issues and voting on resolutions.
SEBI said proxy advisors have played a key role in enabling shareholders to effectively participate in corporate governance decisions. However, due to the inherent nature of the work, it is probable that proxy advisors and listed entities may have different views on any agenda item leading to grievances. “In order to facilitate resolution of such grievances of listed entities against SEBI-registered proxy advisors, the listed entities may approach SEBI,” the regulator added.