HDFC Mutual Fund
Report of Compliance of Stewardship Code for the financial year 2023-24
SEBI has mandated all Mutual Funds to follow the Stewardship Code in relation to the schemes’ investments in listed equities of companies (“Investee Companies”), in accordance with applicable clauses of SEBI Master Circular for Mutual Funds.
In accordance with Principle 6 of the Stewardship Guidelines, Mutual funds should provide a periodic report to the ultimate beneficiaries (unitholders) on discharge of stewardship responsibilities, as a part of public disclosures.
Accordingly, the status report on compliance with the stewardship activities/responsibilities during financial year 2023-24 is mentioned below: -
|
Sr. No. |
Principles of Stewardship Code |
Status (Complied, Deviation, Partly Complied, Not Complied) |
Comments |
|
1. |
Formulation of Policy, its Disclosure and Review |
Complied |
HDFC Mutual Fund (HDFC MF) has formulated Stewardship Code (the Code) in accordance with the provision of the SEBI Circular. This has been approved by the Board of Directors of HDFC Asset Management Company Limited (HDFC AMC or “Company”) and the HDFC Trustee Company Limited and was effective from July 1, 2020. The Code has been disclosed on the Company's website. The Committee authorized under the Code undertakes annual review and / or whenever any changes are to be incorporated in the Code. |
|
2. |
Managing Conflict of Interest |
Complied |
The Stewardship Code also covers conflict of interests in fulfilling stewardship responsibilities. Voting decisions are also guided by voting policy and conflict of interest policy. In all cases the voting decisions of HDFC MF have been based on the overall best interests of the Unit holders. The voting policy has also been disclosed on the website of HDFC Mutual Fund. |
|
3. |
Monitoring of Investee Companies |
Complied |
In accordance with the Stewardship Code, the investee companies were monitored through various activities like financial performance analysis, management evaluation, business outlook, corporate governance, capital structure, industry level changes, and other key risk areas. Monitoring of areas like remuneration, risk related to social and environmental issues, shareholder rights and grievances was done on a best effort basis. |
|
4. |
Policy on Intervention in the Investee Company and collaboration with other Institutional Investors |
Complied |
The Stewardship Code includes guiding principle for intervention in investee companies and on collaboration with other institutional investors. All the interventions were done with the objective to play a constructive role in enhancing the value of the investment in the equity of the investee companies to benefit the unit holders of schemes. |
|
5. |
Voting Policy and disclosure of voting activity |
Complied |
HDFC MF has formulated the Voting policy approved by the Board of directors of HDFC AMC and Trustee Company. The Policy lays down the rules related to voting on the issues related to the investee companies. The Policy has been disclosed on HFDC Mutual Fund’s website. The Company has also uploaded its voting activities on the website on quarterly basis as per the guidelines issued by SEBI and Board approved Stewardship Code and Voting policy. The summary of votes cast during the financial year 2023-24 is disclosed on HDFC MF’s website (https://www.hdfcfund.com/statutory-disclosure/voting). |
|
6. |
Reporting of Stewardship Activities |
Complied |
HDFC Mutual Fund has reported its stewardship activities as per the guidelines issued by SEBI and as per the Stewardship Code and Voting Policy. |
