The Securities and Exchange Board of India (SEBI) on July 12, 2023, issued a Master Circular for ESG Rating Providers (“ERPs”).
The procedural/disclosure requirements and obligations are being specified through this master circular, which will enable the industry and other users to have access to all the applicable directions to ERPs in one place.
ERPs are directed to comply with the conditions laid down in this master circular. Also, ERPs shall have the necessary systems and infrastructure in place for the implementation of this circular. The Board of Directors of the ERP shall be responsible for ensuring compliance with these provisions.
The monitoring of provisions of this circular shall be done in terms of the yearly internal audit for ERPs, mandated under Regulation 28S of the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 (CRA Regulations), and this master circular issued thereunder.
The provisions of the Master Circular shall come into force with immediate effect.
The detailed Master Circular is attached to the document.
[Circular No. SEBI/HO/DDHS/POD2/P/CIR/2023/121]
