Ch.3 · Custodian and RTA Functions · medium
What is the 'proxy voting' obligation of mutual fund AMCs?
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EXPLANATION
SEBI mandates that AMCs exercise voting rights (proxy votes) at all general meetings of companies held in scheme portfolios. AMCs cannot abstain without justification — they must vote based on the best interests of unit holders. All voting decisions (for/against/abstain with reasons) must be disclosed quarterly on the AMC website, making fund houses active stewards of corporate governance.
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