July 11, 2014 9:08 AM

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SEBI asks IRDA to extend disclosure policy to insurers

After getting mutual funds (MF's) to reveal their voting details on resolutions of companies in which they hold considerable stake, capital markets regulator Securities and Exchange Board of India (SEBI) now wants to extend the same disclosure policy to insurers. SEBI has requested the sectoral watchdog Insurance Regulatory and Development Authority (IRDA) to make them do so.The SEBI Chairman U K Sinha while speaking in Mumbai today said that Sebi has spoken to IRDA and has requested it to facilitate implementation of disclosure of voting track record on their websites so that interests of small shareholders are safeguarded.Explaining the rationale behind this, Sinha said this is important from the perspective of LIC, which is the largest domestic institutional investorholding significant stakes in all leading corporates like RIL, L&T, ITC and state-run and private sector banks, among others.It can be noted that SEBI on March 25 this year issued strict disclosure norms to MFs and had asked them to explain the rationale behind exercising their voting rights in companies, as part of a long-term policy for the industry effective from April 1, 2014. It had also asked them to make monthlydisclosures about assets managed by them. Both the measures are aimed atprotecting interests of small shareholders.

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