Regulatory Alerts2024-05-16
Master Circular for ESG Rating Providers (ERPs)
The Securities and Exchange Board of India (SEBI) issued this master circular to consolidate and enforce comprehensive regulatory requirements for all registered ESG Rating Providers (ERPs). The directive mandates strict compliance across registration mechanisms, rating methodologies, governance norms, conflict-of-interest safeguards, and continuous disclosure obligations, while requiring ERPs to establish robust internal systems and board-level oversight. It immediately governs rating operations, outlines procedures for suspension, cancellation, or voluntary surrender of registration, and ensures orderly client migration to maintain market integrity and investor protection.
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