SEBI Sets Up Panel To Examine ESG Rating Providers Regulatory Structure

The Securities and Exchange Board of India (SEBI) on Wednesday announced the formation of a working group to review the regulatory framework for ESG Rating Providers (ERPs). The decision follows feedback received from market participants and stakeholders on the current framework.

The working group includes representatives from issuers, investors, and ESG rating users, domestic and global ERPs, ESG analysts, legal experts, and academia. It has been tasked with conducting a review of the existing regulations governing ERPs and examining representations and suggestions submitted by stakeholders. The group will recommend measures to improve transparency, reliability, and investor confidence in ESG ratings. It will also study international regulatory developments related to ESG ratings and identify areas for alignment with global practices, taking into account the Indian market context.

The working group will submit its report to SEBI with findings and recommendations on policy and regulatory changes required in the ERP framework.