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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL - Reiteration of SEBI Master Circular for ESG Rating Providers (ERPs)

14-Jul-2025 | CDSL/OPS/DP/POLCY/2025/469

CDSL has reiterated the SEBI Master Circular for ESG Rating Providers (ERPs) effective from 14 July 2025. Key Highlights of the Master Circular are as follows: 1. All the applications for registration, processing of application, grant of final registration, application for surrender/ cancellation, submission of periodical reports, requests for change of name/ address/ other details, etc, shall be made on the SEBI Intermediary Portal (https://siportal.sebi.gov.in) which is also available at SEBI website (Para 1.1 of Chapter I). 2. An ERP shall make an application to SEBI for prior approval to the proposed change in control through the SEBI Intermediary Portal (https://siportal.sebi.gov.in) along with the information/ declaration/ undertaking specified in Para 2.2.2. 3. In the interest of clarity to market participants, it is mandated that ESG ratings shall be provided on a scale of 0 - 100, where 100 represents the maximum score. And for existing outstanding ESG ratings, the ERPs shall disclose new rating symbols and definitions on their websites and update their rating lists on their websites. (Para 6.1 and 6.2) 4. ERP shall make the annual disclosures within 30 days from the end of each financial year (March), of the information specified in Para 19.3 which includes -Disclosures on ESG rating History and movement, Details of new ESG ratings assigned during the last year, Disclosure of Average Rating Transition Rates, etc. 5. EPR is required to disclose the compliance status of compliance with recommendations of the International Organization of Securities Commissions (IOSCO) and, in case of any non-compliance, the rationale for divergence has to be disclosed. Kindly refer to the attached document for more information.

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