Category: Data & Disclosure
Draft proposal quotes IOSCO's call for ESG data and ratings to be regulated Draft proposal quotes IOSCO's call for ESG data and ratings to be regulated Draft proposal quotes IOSCO's call for ESG data and ratings to be regulated
India has become the first jurisdiction to propose regulation aimed at ESG ratings providers, with other regulators expected announce whether they’ll go down a similar route soon.
According to draft rules published by securities regulator the Securities and Exchange Board of India (SEBI) yesterday, firms which issue ESG ratings and commentary within the Indian market will have to seek SEBI accreditation to be renewed on a two-year basis.
It comes months after global regulators made a landmark call for ESG data and ratings to be placed under the remit of securities regulators to address longstanding concerns over the comparability and reliability of ESG products – which was also referenced by SEBI in its regulatory text.
ESG ratings and data products providers are not generally subject to regulatory oversight, despite wielding enormous influence over investment allocation decisions following a rapidly growing sustainable investment tre…