Sebi proposes framework to regulate ESG rating providers

A listed entity that intends to avail an ESG rating can obtain the same from only an accredited ERP.

New Delhi: Markets regulator Sebi on Monday proposed a framework to regulate ESG (Environment, Social and Governance) rating providers that seeks to allow credit rating agencies and research analysts to provide such services.

In its consultation paper, Sebi has proposed that Credit Rating Agencies (CRAs)and research analysts with a minimum net worth of Rs 10 crore would be eligible to be accredited as a ESG Rating Provider or ERP.

A listed entity that intends to avail an ESG rating can obtain the same from only an accredited ERP.