India’s securities regulator has proposed measures to make it easier for firms that provide environmental, social and governance ratings to do business in the South Asian nation.
Among other things, the firms will not be required to disclose ratings to bourses, provided they confirm that there is no non-public information that could potentially affect their rating.
The Securities and Exchange Board of India (Sebi) announced the measures in a circular on November 4 titled “Proposals for ease of doing business by ESG rating providers”.
Sebi also wants rating providers to allow the companies rated to respond to reports within a set timeline, and to include their comments as an addendum in the reports.
“These proposals are aimed at enhancing the clarity, transparency, and regulatory alignment of ESG ratings within Sebi's framework,” the regulator says.
There were nine ESG rating providers registered with Sebi as of July this year. They are CRISIL ESG Ratings & Analytics, ESG Risk Assessments and Ratings, GlobeTrend Climate Impact, Institutional Investor Advisory Services, NSE Sustainability Ratings and Analytics, PGS Impact, Pragati Development Consulting, CARE ESG Ratings, and SES ESG Research.