Wednesday, 8 March 2023

SEBI Allows More Time for Public Feedback on Proposed ESG Rating Norms Until March 15th


The Securities and Exchange Board of India (SEBI) has extended the timeline for public comments on the proposed Environmental, Social and Governance (ESG) rating norms until March 15th. The proposed norms aim to improve the disclosure and transparency of ESG ratings for companies listed on Indian stock exchanges.

The extension of the timeline for public comments comes in response to requests from market participants and stakeholders seeking more time to provide their feedback. The original deadline for comments was March 1st.

The proposed ESG rating norms require companies to disclose their ESG performance in their annual reports and on their websites. Companies will also be required to provide information on their ESG policies and practices, as well as their ESG risks and opportunities.

The proposed norms also require ESG rating agencies to disclose their methodology and provide details on how they arrive at their ESG ratings. The rating agencies will be required to maintain a publicly available database of ESG ratings for companies listed on Indian stock exchanges.

The proposed norms have been welcomed by environmental and social activists who see them as a step forward in promoting sustainability and responsible corporate behavior. However, some business leaders have expressed concern that the new regulations could be burdensome and costly for companies.

SEBI has stated that the proposed norms are part of its ongoing efforts to promote sustainable development and responsible investing in India. The regulator has also stated that it will continue to engage with stakeholders and market participants to refine the proposed norms before they are finalized.

The extension of the timeline for public comments is seen as a positive step by market participants and stakeholders, as it provides additional time for feedback and input. It is hoped that the proposed ESG rating norms will ultimately help to promote greater transparency and accountability in corporate sustainability practices in India.