SEBI sets up working group to review ESG ratings
SEBI is putting together a new team to review how companies are rated on Environmental, Social, and Governance (ESG) standards.
This move follows feedback that the current system could be clearer and more reliable.
The goal? To recommend measures to enhance transparency, reliability and investor confidence in ESG ratings for issuers, investors and ESG rating users.
Who's in the new team and what are they doing
The group brings together people from all sides: investors, companies, rating experts (both Indian and global), legal minds, and academics.
They'll dig into how ESG ratings work now, listen to what the market needs, and suggest ways to make the whole process fairer and easier to trust.
Why this matters
Better ESG ratings mean investors can spot genuinely responsible companies more easily—think less greenwashing, more real impact.
SEBI's move establishes a working group to review the ESG Rating Providers framework and recommend measures to enhance transparency, reliability and investor confidence in sustainable investing in India.