n NISM Certifications
X NISM Series X
Medium

Which principles are laid down by SEBI for exercising stewardship responsibilities for institutional investors?

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Clear policy on voting rights and disclosure of voting activity

  2. B

    Policy to monitor company strategy and performance

  3. C

    Policy on issue of unit capital

  4. Both A and B

    Correct answer

Why this is the answer

SEBI mandates institutional investors to have clear policies on voting and monitoring investee companies' strategy and performance to ensure active stewardship.

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