Sebi mandates certification for ESG rating providers within six months

Regulation to level playing field for Indian companies, say experts

The Securities and Exchange Board of India (Sebi), through a notification issued on July 3, has mandated that all entities providing ESG (environmental, social, governance) rating services will have to get a certification from the regulator within six months.

The markets regulator has introduced two categories for the rating entities depending on their networth and functions.

ERPs located outside India but issuing ESG ratings for Indian companies and having a user base in India will also have to comply with the new regulation.

Until now, India did not have any specific regulations for the ERPs. Experts are of the opinion that a defined