New Delhi, February 18 The market regulator, Sebi, announced on Wednesday that it has formed a working group to review the regulatory framework governing ESG Rating Providers (ERPs).
The decision was made based on feedback received from market participants and stakeholders regarding the existing regulatory framework.
The working group comprises representatives from issuers, investors/ESG rating users, domestic ERPs, global ERPs, ESG analysts, legal experts, and academia, Sebi said in a statement.
The group is required to conduct a comprehensive review of the existing regulatory framework governing ERPs; examine representations and suggestions received from market participants; and recommend measures to enhance transparency, reliability, and investor confidence in ESG ratings.
Additionally, it is tasked with evaluating international regulatory developments in the ESG rating space and identifying areas for alignment with global best practices, while considering 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.
