What is the Code for Stewardship for the insurers ?

The IRDAI has implemented a code for stewardship for the insurers. The code is in the form of a set of principles, which the insurers would need to adopt. The principles may be uniformly adopted for institutional investors, like Mutual Funds, Pension Funds, Foreign Portfolio Investors (FPIs), Alternative Investment Funds (AIFs), etc. The code broadly requires the insurers to have a policy as regards their conduct at general meetings of the investee companies and the disclosures relating thereto. The code was made applicable from FY 2017-18. Stewardship Principles provided in the Code Principle 1: Insurers should formulate a policy on the discharge of their stewardship responsibilities and publicly disclose it. Principle 2: Insurers should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it. Principle 3: Insurers should monitor their investee companies. Principle 4: Insurers should have a clear policy on intervention in their investee companies. Principle 5: Insurers should have a clear policy for collaboration with other institutional investors, where required, to preserve the interests of the policyholders (ultimate investors), which should be disclosed. Principle 6: Insurers should have a clear policy on voting and disclosure of voting activity.