Enabling ESG Rating Providers (ERPs) to undertake ESG rating activities under IFSCA
Summary
SEBI adds the International Financial Services Centres Authority (IFSCA) to the list of regulators whose guidelines allow ESG Rating Providers to undertake ESG rating activities. This amendment enables ERPs to offer such ratings within the IFSC-GIFT City under IFSCA's jurisdiction. Consequently, IFSCA assumes responsibility for enforcement, complaints, and regulatory oversight regarding these specific ESG rating services.
Text
To enable ERPs to undertake ESG rating activities in the International Financial Services Centre - Gujarat International Finance Tech-city (IFSC-GIFT City), International Financial Services Centres Authority (IFSCA) is hereby added to the list of financial sector regulators/ authorities as specified in Annexure 4 of the aforesaid Master Circular for ERPs.
In line with the above provision, it is specified that the ESG ratings undertaken by an ERP under the guidelines of IFSCA shall be under the purview of IFSCA.
Any issue arising from the activities of such SEBI registered ERPs in the IFSC shall be dealt with by IFSCA under the powers exercisable under Section 12 and 13 of IFSCA Act and regulations and subsidiary instructions made thereunder.
IFSCA shall be responsible for dealing with complaints, enforcement actions and furnishing information to third parties, including statutory or judicial bodies, in respect to the services provided by the ERPs in the IFSC.
The circular shall be applicable with immediate effect.
This circular is issued with the approval of competent authority, in exercise of the powers conferred by Section 11 (1) of Securities and Exchange Board of India Act, 1992 read with the provisions of Regulation 28H of CRA Regulations to protect the interest of investors in securities and to promote the development of, and to regulate, the securities market.
Source: SecMarx — Enabling ESG Rating Providers (ERPs) to undertake ESG rating activities under IFSCA. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.