CIRCULAR
SEBI/HO/DDHS/DDHS-POD3/P/CIR/2024/103 July 19, 2024
To
All Registered ESG Rating Providers (ERPs),
Dear Sir/ Madam,
Sub: Enabling ESG Rating Providers (ERPs) to undertake ESG rating activities under
IFSCA
1. In terms of Regulation 28E(d) of SEBI (Credit Rating Agencies) Regulations, 1999 (‘CRA
Regulations’), Para 7.1 of the Master Circular for ERPs dated May 16, 2024 provides that
ERPs may undertake or offer ESG rating of any product or issuer, as may be required by
another financial sector regulator or authority, under the guidelines of such regulator or
authority. 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.
2. 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. Accordingly:
2.1. 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.
2.2. 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.
3. The circular shall be applicable with immediate effect.
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4. 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.
Yours faithfully,
Sarika Kataria
Deputy General Manager
Department of Debt and Hybrid Securities
Tel No.022-2644-9411
Email ID - sarikak@sebi.gov.in
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