Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators

Kaveri Power Ltd wants to use an ESG rating in its investor presentation. The company secretary advises that, in India, ESG rating providers offering ratings in the securities market are regulated by SEBI. Which category of entity does this describe?

The entity described is an ESG Rating Provider registered with SEBI. SEBI's framework requires providers offering ESG ratings in the securities market to obtain registration, so a credit rating licence alone does not allow a credit rating agency to issue such ratings.

  1. AESG Rating Providers registered with SEBI under its frameworkCorrect
  2. BRegistered valuers appointed under the Companies Act
  3. CStock exchange listing departments
  4. DCredit rating agencies only, using their credit rating licences without separate registration

Explanation

SEBI introduced a framework under which ESG Rating Providers (ERPs) offering ESG ratings in the securities market must be registered with it. Valuers and exchange departments are not the regulated rating providers for this purpose. A credit rating agency must also obtain ERP registration to offer ESG ratings.

Did you get it right without looking?

One question tells you little. A timed set on Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators shows your real accuracy, how long you take and where you lose marks.

Practise Sustainability Audit, ESG Rating and Emerging Mandates from Government and RegulatorsFree diagnostic mock

More Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators questions