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FIIs take cautious stand on CEO compensations
Last month, Sebi made voting on corporate resolutions compulsory for mutual funds (MFs). Sebi has asked other institutional investors to follow a ‘transparent’ Stewardship Code in order to be truly accountable to their clients and beneficiaries.
Synopsis
In the past four weeks, institutional investors in companies such as Nippon Life India Asset Management, La Opala RG, InterGlobe Aviation, Varun Beverages and Sundram Fasteners have voted against resolutions on executive pay.
MUMBAI: Institutional investors seem to be taking an increasingly cautious view of chief executive compensation. In the past four weeks, institutional investors in companies such as Nippon Life India Asset Management, La Opala RG, InterGlobe Aviation, Varun Beverages and Sundram Fasteners have voted against resolutions on executive pay.
Nippon Life India Asset Management (NAM India) reported a consolidated net profit of Rs 167 crore in Q4 FY21 compared with net profit of Rs 4 crore in Q4 FY20.
Total income during the quarter increased by 142% year-on-year (YoY) to Rs 362 crore. Nippon Life India Asset Management is an asset manager of Nippon India Mutual Fund (NIMF).
For the quarter ended 31 March 2021, NIMF s average assets under management was Rs 2,28,586 crore, an increase of 12% year-on-year.
For the quarter ended 31 March 2021, share of equity assets rose to 40.6% of NIMF s AUM as against 39.1% for the quarter ended 31 December 2020. However, it is lower compared with 42% for the quarter ended 31 March 2020.
SGX Nifty points to a positive opening
April 27, 2021
News related to Covid spread and Q4 results will drive the market sentiment After a strong beginning for the week, Indian markets are expected open on a cautious note with minor gains on Tuesday. With global cues remaining mixed, shut-down worries in some States due to Covid pandemic will keep then domestic market on the edge, said analysts.
The SGX Nifty at 14,542 (8 am IST) indicates a positive opening for Nifty futures, which on Monday closed at 14,537 points (May futures) and at 14,486 points (April futures). Most markets in the Asia-Pacific region such as Japan, Korea, China, Australia and the Philippines are in the red marginally while Taiwan market is up by about by 0.2 per cent.
Mutual fund (MF) house Nippon Life India Asset Management (Nippon MF) has faced opposition from institutional investors on a resolution pertaining to the remuneration of CEO and Executive Director Sundeep Sikka.
About 83 per cent, or 28.6 million of the 34.47 million votes polled by the public institution opted “against” the special resolution, disclosures made by the company last week to the BSE showed. The resolution was still passed as it obtained an overall 94.2 per cent “in favour” votes, given the higher promoter holding in the company.
The resolution was floated as Sikka’s remuneration for the financial year 2020-21 is likely to exceed the maximum permissible under the Companies Act and Sebi’s Listing Regulations.