Indian Securities Regulator Consults on Changes to ESG Disclosure and Ratings Regulation

March 24, 2023

The Securities and Exchange Board of India (SEBI) launched a consultation paper (Consultation Paper) last month seeking public comment on three topics: (1) ESG disclosure; (2) ESG ratings; and (3) ESG investing by mutual funds. The comment period closed on March 6, 2023, with SEBI seeking additional comments on the regulatory framework for ESG ratings providers. By way of explaining the need for and goals of the consultation, SEBI stated that “as ESG Investing becomes mainstream, companies have been urged by both investors and regulators to make detailed ESG related disclosures to their stakeholders. The use of ESG ratings and rating products is also growing, as investors increasingly factor ESG parameters in their investment decisions. In this backdrop, securities market regulators have felt a need to streamline these three areas of ESG Disclosures, ESG Ratings and ESG Investing.”

Continue reading.