Sebi may soon introduce framework on ESG rating providers, say sources

Standardisation woes slow ESG reform push; industry for uniform assessment criteria

The Securities and Exchange Board of India (Sebi) could soon issue a framework for environmental, social, and governance (ESG) rating providers (ERPs)--third-party agencies that help determine ESG compliance of listed companies.

According to sources, the market regulator could place the proposals on ERP regulations before its board at its next meeting scheduled for later this month.

In January, Sebi had floated a consultation paper on these rules. Later in March, it extended the timeline for submission of public comments.

People in the know said Sebi is readying a framework in this regard and aims to introduce it later this month.

“ESG is an important