Calls to regulate global proxy advisory firms mounted after 2 US-based firms recommended a vote against re-election of 3 Indian stalwarts to HDFC Board. What are these firms, why is their working contentious?
Former RBI Governor Bimal Jalan and chartered accountant Bansi Mehta opted out of the voting for re-election as directors when it became clear that 2 global proxy firms and a domestic firm had advised investors to vote against their re-election.
Deepak Parekh, chairman of HDFC , who has been at the helm of the firm for 30 years, got 77.36 per cent vote of shareholders at the annual general meeting (AGM) of the company held in Mumbai on July 30.
The regulators have not allowed banks and housing finance companies to fund land transactions, yet non-banking financial companies (NBFCs) and private equity players are permitted to do so in the past 12 years.