SEBI Forms Working Group to Review ESG Rating Regulations

The Securities and Exchange Board of India (SEBI) has constituted a dedicated working group to undertake a comprehensive review of the regulatory framework governing ESG Rating Providers (ERPs). The decision comes in response to feedback and representations received from market participants and other stakeholders regarding the current regulatory structure.

Focus on Transparency and Investor Confidence

The regulator stated that the panel will examine the existing framework in detail, evaluate suggestions and industry representations, and recommend measures to enhance transparency, strengthen the credibility of ESG ratings, and reinforce investor confidence in the system.

The working group will also assess international regulatory developments in the ESG ratings landscape. It aims to identify areas where India’s framework can be aligned with evolving global best practices, while ensuring that domestic market realities and requirements are adequately addressed.

Also Read: SEBI Rolls Out Revised Registration Framework for Market Intermediaries

Diverse Representation in the Panel

The group comprises representatives from issuers, investors, and users of ESG ratings, along with domestic and global ERPs, ESG analysts, legal experts, and members of academia. The panel will submit its findings and recommendations on policy and regulatory changes to SEBI upon completion of its review.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.