The Securities and Exchange Board of India (Sebi) is planning to make the registration for environmental, social, and governance (ESG) rating providers, or ERPs, mandatory under a new regulatory framework that will also look to address norms related to disclosures, methodology for ESG scoring, and developing a parallel approach for ESG rating suitable to emerging markets.
In a fresh consultation paper, the capital markets regulator has proposed a framework for ESG scoring parameters and rating providers.
Presently, ERPs are not subject to any regulatory oversight but continue to provide services for the securities market — a risk Sebi has identified towards investor protection, capital allocation, greenwashing, and risk pricing.
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.