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Voting policy

Background of the policy

IDFC Asset Management Company Ltd (AMC) is the asset management company for IDFC Mutual Fund. The AMC while managing the schemes would be obligated to act in the best interest of the investors and would participate in meetings and exercise voting rights as shareholders in the companies wherein the scheme has invested.

This Policy lays down the broad guidelines to be adopted while considering matters in which the AMC deems necessary to participate as shareholders in companies. The AMC believes that while due diligence is exercised in the process of investment decision making; it would be the responsibility of the AMC to review performance on a continual basis including matters proposed by the management for shareholders approval. The Custodian shall inform the AMC upon receipt of notice from the company seeking shareholder's approval, The AMC shall review the impact of such matters placed for shareholder's consideration and take decision on exercising its rights. In general, the AMC does not have the intention to participate directly or indirectly in the management of the companies. But it will use its influence as a shareholder amongst others by exercising its voting rights in accordance with the best interests of its funds unit holders.

Proxy voting guidelines

With respect to investments in group companies of the AMC, the AMC shall endeavour to abstain from voting for / against . unless the resolution or the matter is detrimental to the interest of the investors. The AMC shall abstain from voting in any resolutions of any other companies unless the committee believes the resolution is not in the interest of investors.

On receipt of notice from the investee company the Custodian shall inform the AMC, and the resolutions for voting shall be discussed at the Investment committee meeting.

With respect to decision making the Investment Committee of the AMC shall review all proposals, even those that may be considered to be routine matters. Such proposals shall be considered based on the relevant facts and circumstances.The Investment Manager may deviate from the general policies and procedures when it determines that the particular facts and circumstances warrant such deviation to protect the interests of the clients. These guidelines cannot provide an exhaustive list of all the issues that may arise nor can Investment Manager anticipate all future situations.

Processes to be adopted for participating in general meeting

Delegation of powers to vote: The Chief Executive Officer/ Chief Investment Officer / Head – Legal & Compliance of IDFC Asset Management Co. Ltd. will represent IDFC Mutual Fund as proxy voter or shall delegate authority to the Custodian of the fund to vote on behalf of IDFC Mutual Fund.

Record keeping:
The AMC shall maintain records of all notices received through the Custodian on matters placed for vote and decision (abstain/vote for or against) taken by the Investment Committee.
The cases where IDFC MF had participated/voted for /against any resolutions of the companies in which IDFC MF has any investment is listed hereunder:

Company Name :VST INDUSTRIES LTD
No. of shares held :373997
Scheme Name :IDFC Sterling Equity Fund



Management Proposals

Meeting Date Type of Meeting Proposal Management Recommendation Vote (For/ Against/Abstain)
09-12-11Postal BallotSpecial Resolution for change in place of keeping the Register & Index of Members and copies of Annual Returns etc., at Karvy Computershare Private Limited, Hyderabad instead of being kept at the Registered Office of the Company or at the office of Sathguru Management Consultants Private limited, Hyderabad, due to change in Registrar & Share Transfer Agent.Passed with requisite majorityFOR



Shareholder Proposals

Meeting Date Type of Meeting Proposal Management Recommendation Vote (For/ Against/Abstain)
NIL