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        Clarificatory and Procedural changes to aid and strengthen ESG Rating Providers (ERPs)

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        ESG rating withdrawal rules refined: providers must follow business model specific withdrawal and disclosure protocols on exchanges. Specifies business model specific withdrawal norms: subscriber pays ERPs may withdraw ratings only where no subscribers exist for that rating, must not withdraw ratings forming part of subscribed packages, must prevent future redistribution of withdrawn ratings, and may withdraw for non availability of BRSR; issuer pays ERPs face continuity conditions and bondholder consent prerequisites for withdrawal. Subscriber pays ERPs may restrict detailed rating rationales to subscribers but must publish specified minimal rating disclosures year wise on their websites; stock exchanges must prominently disclose ESG ratings and standardized metadata supplied by ERPs. Internal audit and governance committee requirements for Category II ERPs are deferred for an initial period, audit team composition is broadened, and standardized clarification and response protocols between rated entities and ERPs are prescribed while protecting proprietary methodologies.
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              ESG rating withdrawal rules refined: providers must follow business model specific withdrawal and disclosure protocols on exchanges.

                              Specifies business model specific withdrawal norms: subscriber pays ERPs may withdraw ratings only where no subscribers exist for that rating, must not withdraw ratings forming part of subscribed packages, must prevent future redistribution of withdrawn ratings, and may withdraw for non availability of BRSR; issuer pays ERPs face continuity conditions and bondholder consent prerequisites for withdrawal. Subscriber pays ERPs may restrict detailed rating rationales to subscribers but must publish specified minimal rating disclosures year wise on their websites; stock exchanges must prominently disclose ESG ratings and standardized metadata supplied by ERPs. Internal audit and governance committee requirements for Category II ERPs are deferred for an initial period, audit team composition is broadened, and standardized clarification and response protocols between rated entities and ERPs are prescribed while protecting proprietary methodologies.





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                              ActsIncome Tax
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