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Policy and regulations

Rating the raters: What Sebi’s ESG rating regulations mean for the business model

Rating the raters: What Sebi’s ESG rating regulations mean for the business model
Rating the raters: What Sebi’s ESG rating regulations mean for the business model
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It becomes increasingly imperative for market regulators to closely examine the methodologies and business models employed by ESG rating providers.

Synopsis

Sebi issued regulations for ESG rating providers last month. The regulations cover various aspects such as registration, operations, disclosures, and audits. This is a step in the right direction and will help create a level playing field and promote transparent rating methodologies.

The last decade has witnessed a remarkable increase in the significance of environmental, social, and governance (ESG) and sustainability discussions in the corporate world and among investors. As a result, numerous ESG rating providers have emerged. These entities offer ESG ratings to facilitate informed corporate and investment decisions. As the importance of ESG ratings continues to gather momentum in the financial ecosystem, it becomes
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The Economic Times