Sebi launches 'Proxy Advisory Recommendations' on Investor App, backs stronger market surveillance

SEBI Enhances Investor Access with New Proxy Advisory Feature

In a move aimed at bolstering shareholder participation and reinforcing market transparency, the Securities and Exchange Board of India (SEBI) has launched a new feature titled 'Proxy Advisory Recommendations' on its SEBI Investor App. The feature allows investors to view voting recommendations from proxy advisory firms, helping them make informed decisions during corporate resolutions.

This initiative comes as part of SEBI’s broader strategy to promote corporate governance and protect minority shareholders’ interests in listed companies. Alongside the app upgrade, SEBI also reiterated its commitment to stronger market surveillance, aiming to clamp down on unfair practices and insider trading in the rapidly expanding Indian capital markets.

How the New Feature Works

The newly integrated feature on the SEBI Investor App provides users with real-time proxy advisory opinions related to resolutions proposed by listed companies. Recommendations from leading proxy advisory firms—such as Institutional Investor Advisory Services (IiAS), Stakeholders Empowerment Services (SES), and InGovern—are now accessible with just a few taps.

Investors can check advisories on critical issues such as:

• Executive compensation

• Board appointments

• Mergers and acquisitions

• Corporate restructuring

• ESG-related proposals

This comes especially timely as India’s AGM (Annual General Meeting) season gathers pace, allowing investors greater clarity and support in navigating complex boardroom decisions.

Market Experts Hail the Move

Market participants and analysts welcomed the development, seeing it as a progressive leap for minority shareholder rights and transparency.

"This is a significant democratization of institutional-grade insights," said Anjali Mehta, Corporate Governance Analyst at Prabhudas Lilladher. "Previously, only institutional investors had easy access to these recommendations. Now, retail investors can engage more meaningfully in corporate decisions, which is a step towards inclusive financial empowerment."

Echoing similar sentiments, Rajeev Jain, Head of Research at Mirae Asset India, noted, "SEBI is setting the tone for a participatory market culture. Transparency breeds trust, and trust attracts long-term capital."

Strengthening Surveillance to Protect Market Integrity

In tandem with investor-facing digital initiatives, SEBI reaffirmed its focus on enhanced market surveillance, particularly in detecting manipulative trading behavior, front-running, and circular trading patterns.

Speaking at a regulatory workshop in Mumbai, SEBI Chairperson Madhabi Puri Buch said, “We are using cutting-edge technologies like AI and machine learning to monitor trading patterns across exchanges. The idea is not just to catch wrongdoers after the fact, but to prevent malpractices before they inflict damage.”

SEBI is currently piloting AI-based surveillance systems that offer real-time anomaly detection, potentially enabling early warnings on pump-and-dump schemes, price rigging, and insider transactions.

Industry Response and Broader Implications

The Indian market, among the best performing in Asia in the past year, has witnessed a surge in retail participation. According to NSDL and CDSL data, the number of active retail demat accounts has crossed 14 crore as of June 2025, up from 11 crore a year ago.

With this unprecedented scale of participation, experts argue that tools like proxy recommendations are not merely value-additions but necessities.

"A well-informed investor base is the best form of market surveillance," stated Alok Dugar, Managing Director at Centrum Capital. "When millions of investors know their rights and have access to independent analysis, corporate wrongdoings become harder to execute."

Further, SEBI’s commitment to transparency may also help attract more global institutional investors who are often wary of opaque governance standards in emerging markets.

Investor Outlook: What This Means Going Forward

The rollout of Proxy Advisory Recommendations on the SEBI Investor App marks a watershed moment for retail investors. Coupled with tighter surveillance, these reforms align SEBI with global best practices followed by regulators like the SEC (US) and FCA (UK).

Investors can expect:

• More accountable corporate decision-making

• Enhanced protection from governance-related risks

• A more level playing field in shareholder voting processes

SEBI also hinted at integrating more features in upcoming updates, including real-time alerts on insider trading disclosures, and educational content on voting mechanisms.

By empowering retail investors and investing in stronger surveillance tools, SEBI is laying the foundation for a fairer, more transparent, and inclusive capital market. As India continues to be a magnet for global capital, such initiatives will be crucial in maintaining investor confidence and sustaining long-term economic growth.