SEBI relaxed the timeline for Review of ESG Rating pursuant to occurrence of ‘Material Events’ to promote Ease of Doing Business

The Securities and Exchange Board of India (“SEBI”) has issued a Circular on “Timeline for Review of Environmental, Social, and Governance (“ESG”) Rating pursuant to occurrence of ‘Material Events’”. Considering the operational challenges highlighted by ESG Rating Providers (“ERPs”) in reviewing ESG ratings for a large pool of listed companies within 10 days of BRSR publication, SEBI has relaxed the timeline for such reviews to promote Ease of Doing Business.

ERPs must review ESG ratings upon the occurrence, announcement, or news of material developments immediately, but no later than 10 days from the occurrence of the event. However, the review of ESG ratings pursuant to the publication of Business Responsibility and Sustainability Report (“BRSR”) by the rated entity must now be conducted immediately, but no later than 45 days from the publication of the BRSR.

Please click on the hyperlink below to have a detailed read of the Circular.

Source: Securities and Exchange Board of India

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