TaxTMI 
TaxTMI 
Master Circular for ESG Rating Providers (“ERPs”)
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....e conditions laid down in this master circular. Also, ERPs shall have necessary systems and infrastructure in place for implementation of this circular. The Board of Directors of the ERP shall be responsible for ensuring compliance with these provisions. IV. This circular is issued 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, to promote the development of, and to regulate, the securities market. V. Applicability: The provisions of the Master Circular shall come into force with immediate effect from the date of notification of this Master Circular. For the purpose of this Circular, "listed entity" shall have the same meaning as provided in Regulation 2(1)(p) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. VI. Monitoring: Monitoring of provisions of this circular shall be done in terms of the yearly internal audit for ERPs, mandated under Regulation 28S of the CRA Regulations and this master circular issued thereunder. VII. This Circular....
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....¤¿à¤¨à¤¿à¤®à¤¯ बोरà¥à¤¡ Securities and Exchange Board of India 27. General Guidelines for dealing with Conflicts of Interest of ERPs and their Associated Persons in Securities Market: 28. Standardization of Industry classification - Applicability to ERPs. 29. Firewall between ERPs and their Affiliates:. Annexures... Page 4 of 60 38 40 41 .42 5331 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Chapter I: Registration, Approval and Surrender Requirements 1. Registration Mechanism for ESG Rating Providers 1.1. SEBI has operationalized SEBI Intermediary Portal (https://siportal.sebi.gov.in) for the intermediaries to submit all the registration applications online. The SEBI Intermediary Portal shall include online application 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., Link for SEBI Intermediary Port....
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....on by an ERP shall be accompanied by the following information/ declaration/ undertaking about itself, the acquirer(s) / the person(s) who shall have the control and the directors/ partners of the acquirer(s)/ the person(s) who shall have the control: 2.2.2.1. Current and proposed shareholding pattern of the applicant 2.2.2.2. Whether any application was made in the past to SEBI seeking registration in any capacity but it was not granted? If yes, details thereof. 2.2.2.3. Whether any action has been initiated / taken under the Securities Contracts (Regulation) Act, 1956 (SCRA) / Securities and Exchange Board of India Act, 1992 (SEBI Act) or rules and regulations made thereunder? If yes, status thereof along with the corrective action taken to avoid such violations in the future. The acquirer/ the person who shall have the control shall also confirm that it shall honour all past liabilities / obligations of the applicant, if any. 2.2.2.4. Whether any investor complaint is pending? If yes, steps taken and confirmation that the acquirer/ the person who shall have the control shall resolve the same. Page 6 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥....
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.... of India 2.3.2. Upon being satisfied with compliance of the applicable regulatory requirements, an in-principle approval will be granted by SEBI; 2.3.3. The validity of such in-principle approval shall be three months from the date issuance, within which the relevant application shall be made to NCLT. 2.3.4. Within 15 days from the date of order of NCLT, the intermediary shall submit an online application in terms of paragraph 2.2 of this circular along with the following documents to SEBI for final approval: 2.3.4.1. Copy of the NCLT Order approving the scheme; 2.3.4.2. Copy of the approved scheme; 2.3.4.3. Statement explaining modifications, if any, in the approved scheme vis- Ã -vis the draft scheme and the reasons for the same; and 2.3.4.4. Details of compliance with the conditions/ observations, if any, mentioned in the in-principle approval provided by SEBI. 3. Transfer of business by SEBI registered intermediaries to other legal entity 3.1. SEBI has been receiving registration applications pursuant to transfer of business (SEBI regulated business activity) from one legal entity which is a SEBI registered Intermediary (transferor) to other legal entity (tr....
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.... 4.1.1.2. not take any new clients or fresh mandates; 4.1.1.3. allow its clients to withdraw any assignment given to the ERP, without any additional cost to such clients; 4.1.1.4. facilitate an orderly migration of assignments as desired by clients to other ERP(s) holding a certificate of registration under CRA Regulations; 4.1.1.5. continue to comply with the provisions of the CRA Regulations and circulars issued thereunder, till the time the ERP holds the certificate of registration; 4.1.1.6. continue to co-operate with SEBI with regard to sharing of information when requested and payment of fees as required under CRA Regulations; 4.1.1.7. take such other action including providing any records or documents Page 9 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India within the time period and in the manner, as may be required under the CRA Regulations or as may be directed by SEBI. 4.1.2. The ERP, on and from the date of acceptance of the Request, or when it is commencing the winding up pro....
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....ny product or issuer, which falls within the ambit of another regulator or authority, as specified at Para 5.5, then such ERP shall obtain approval/ NOC from such regulator or authority and submit a self-attested copy of the same to SEBI along with the request for surrender of certificate. If the ERP does not have any outstanding rating of any such product or issuer, it shall provide a confirmation to that effect. 4.1.5.3. The ERP may, if it so desires, make a representation for dispensing with the procedure, along with the application, for surrender in terms of the first proviso to Regulation 33B of Securities and Exchange Board of India (Intermediaries) Regulations, 2008 in the prescribed format placed as Annexure 2. 4.1.5.4. In all cases of transfer of business or client accounts to another registered intermediary, the clients shall not be subjected to any additional cost. 4.1.5.5. ERP shall maintain its records, documents, information obtained from its clients during the course of ESG rating from its clients, for at least three years after surrender of registration. 4.1.5.6. In its application to SEBI, the ERP shall also provide an undertaking that it shall c....
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....ESG rating or score have been treated interchangeably in this circular. Any reference to ratings in this circular shall refer to ESG ratings, unless stated otherwise. 5.2. An ERP shall offer at least the following ESG rating products: 5.2.1. ESG Rating 5.2.2. Transition or Parivartan Score 5.2.3. Combined Score 5.2.4. Core ESG Rating 5.2.5. Core Transition or Parivartan Score 5.2.6. Core Combined Score 5.3. An ERP may provide additional ESG rating products subject to compliance with relevant provisions of the CRA regulations and circulars issued thereunder. 5.4. Further, the following is clarified: 5.4.1. If in any of the ESG rating products referred to at Para 5.2.1-5.2.3, the ERP relies only on third-party assured parameters, then the ERP shall not be required to provide separate ESG rating products referred to at Para 5.2.4- 5.2.6, respectively, or a non-core variant thereof. For instance, if an ERP's transition scoring is based only on third-party assured data, the ERP shall not be required to provide a separate product Page 13 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और वि....
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....file. This transition score could track changes in quantitative metrics in trend-lines or change in revenues from environmental/social services and products or any quantitative assessments, as per the model of the ERP. 5.6.3.2. Combined Score: incorporating ESG rating and transition rating, i.e., measuring both the status and the ability to transition shall also be provided. A combined score shall be determined in the following manner: ESG Score + Transition or Parivartan Score = Combined Score Note: The "+" symbol does not denote a simple addition of the two scores. An ERP shall be free to combine the two scores in a way that is consistent with its publicly-disclosed rating methodology. 5.7. Core ESG Rating 5.7.1. ERPs shall provide a rating called the "Core ESG Rating" that shall be based on third-party assured or audited data disclosed by the Company. 5.7.2. Further, core ESG rating rationales may contain an additional commentary / observations on data that may not be verified/ assured by a third-party. The same ensures that unverified data is not included in core ESG rating, but at the same time, users of core ESG rating are made aware of the unverified infor....
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....¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 7.2. Client-group level segregation for ESG ratings and/or green debt certifications - 7.2.1. For the purpose of this provision, client group shall include the client company of an ERP and all the group companies of such client of the ERP. 7.2.2. For any client group, an ERP shall only offer one of the following two product categories (i) ESG ratings/ certification of green debt securities or (ii) audit of financial statements / assurance of sustainability disclosures. 7.2.3. In case an ERP wishes to migrate from offering ESG ratings/ green debt certification to offering audit/assurance to a client-group, or vice versa, a cooling period of one year shall be applicable. 8. Business Model 8.1. ERPs shall follow either of the following two business models: 8.1.1. "Subscriber-pays" business model, where the ERP derives its revenues from ESG ratings from subscribers that may include banks, insurance companies, pension funds, or the rated entity itself. 8.1.2. "....
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....em: 9.4.1. ESG rating of listed entities: Records to be maintained at all times. However, upon withdrawal of ESG rating, records to be maintained till 5 years from the date of withdrawal. 9.4.2. ESG rating of listed securities: Records to be maintained till 5 years from date of maturity of such securities. However, upon withdrawal of ESG rating, records to be maintained till 5 years from the date of withdrawal. Page 18 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 9.5. During the rating process, ERPs shall record minutes of the meeting with issuer management, if any. 9.6. The process of discussion of case by circulation must be avoided, unless there is urgency in taking a rating action. 9.7. The ERP shall, on an annual basis, undertake a review of the decisions taken by it in that year, which would, inter alia, include: 9.7.1. ESG Ratings assigned by the ERP, including ratings assigned based on best available information in cases of non- cooperation by the issuer. 9.7.2. Sharp changes ....
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....: 11.3.1. Current ESG rating/score 11.3.2. Change in rating/score from the previous evaluation (direction) 11.3.3. Last review date 11.3.4. Summary of key drivers both qualitative (including controversies and their impact) and quantitative factors considered for arriving at the overall ESG rating - 11.3.5. Pillar wise E, S and G scores – key drivers (including industry comparison of material parameters) both quantitative and qualitative being considered for carrying out such assessment 11.3.6. Weights of E, S and G scores in the assigned ESG rating 11.3.7. Brief explanation of rating intent to clarify if it represents unmanaged risks/ performance against risks/ impact etc. In case this is available in a methodology document, cross-linking of the relevant document would suffice 11.3.8. Summary of or link to methodology used. 11.4. Disclosure of rating sensitivities in the rating rationale Page 20 of 60 5331 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 11.4.1. The disclosure of factors to....
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....n by the ERP. 12.1.2. ERPs following an issuer-pays business model shall refrain from giving Indicative Ratings without having a written agreement in place. In case such Indicative Ratings are provided by the ERP, it shall be considered as aiding and abetting the Issuer in suppression of material information by the ERP which would be in contravention of Clause 12 of Code of Conduct of ERPs and may result in violation of the provisions of section 12A of the Securities and Exchange Board of India Act, 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 by the ERP. 12.2. Issuer-Not-Cooperating: 12.2.1. Regulation 28M provides that if the rated issuer or the issuer whose securities are rated by the ERP refuses to co-operate with the ERP regarding review of the ESG rating, despite being under a contractual obligation to do so, the ERP shall review the ESG rating on the basis of the best available information. 12.2.2. In case of non-cooperation by the issuer (such as not providing information required for rating, non-payment of fees for conducting surveillance), in line with the existing Regulations, the E....
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.... details of the Rating Analyst(s) Page 23 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 12.2.7. In case an issuer, having not co-operated with an ERP in the past, approaches another ERP, following an issuer-pays business model, for ESG rating, the new ERP shall, in its Rating Rationale, disclose the aspect of non- co-operation. 12.2.8. No ERP, following an issuer-pays business model, shall assign any new ratings to an issuer, if the issuer is categorized as non-cooperative with all the ERPs for a continuous period of preceding 12 months, until the issuer resumes cooperation or the rating is withdrawn. 13. Withdrawal of ratings 13.1. Regulation 28M of CRA regulations prescribe, inter-alia, that an ERP shall not withdraw an ESG rating except in cases where the rated issuer, or the issuer whose security is rated, is wound up or merged or amalgamated with another company, or except in cases as may be specified by SEBI from time to time. Further, subject to CRA Regulations, ERP shall withdra....
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....ing analysts/team of ERPs shall be clearly laid out by the ERP. 16.2. Analysts or other members of the ESG rating team shall be responsible for undertaking the ESG rating process and adhering to the timelines as specified by the ERP. 17. Dealing with Conflict of interest 17.1. An ERP shall formulate the policies and internal codes for dealing with the conflict of interest. 17.2. An ERP shall ensure: Page 25 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 17.2.1. that its analysts do not participate in any kind of marketing and business development including negotiations of fees with the issuer who is being rated or whose securities are being rated, 17.2.2. that the employees' involved in the ESG rating process and their dependents do not have ownership of the shares of the issuer. 17.2.3. prompt review of the ESG ratings of the entities/securities as and when any of its employees joins the respective issuer. 17.3. Guidelines for dealing with Conflict of Interest for investment/ trading ....
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....s an employee of the ERP, shall submit a statement of holding of all securities in respect of persons mentioned at para 17.3.2 above to the Compliance officer or Chief Executive, as the case may be, within 7 working days of joining ERP. b. All employees of ERP including the Access Persons shall submit the following details to the CEO/Compliance Officer, as the case may be: i. Details of purchase or sale transactions effected within 7 working days from the date of transaction. ii. A consolidated statement of holding of all securities within 30 working days from the end of the Financial Year. c. The members of the Rating Committee shall upfront declare / disclose their interest, if any, to the Chief Executive Officer or Compliance Officer, as per the policy of the ERP, in the securities/instruments/facilities that are considered for rating by the ERP. 17.3.4.5. Restrictions on employees holding ownership of securities of the issuer: An ERP shall ensure that employees involved in the rating process shall not have ownership of the securities of the issuer. Page 27 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚तà....
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....anding ratings as on 31st March" section of Annexure 5 shall also include number of INC ratings outstanding in each category also, if applicable. 19.3.1.2. Details of new ESG ratings assigned during last year (Annexure 6) 19.3.1.3. Movement of ESG rating of all outstanding listed entities/ securities during the last year (Annexure 7), 19.3.1.4. The history of ESG rating of all outstanding listed entities/ securities (Annexure 8), 19.3.2. Disclosure of Average Rating Transition Rates 19.3.2.1. Regulation 28K of CRA Regulations requires an ERP to publish its average one-year ESG rating transition rate on its respective website, in a manner as may be specified by SEBI; Page 29 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 19.3.2.2. Transition studies are central to evaluating the performance of an ERP and provide an insight on the stability of ratings over a period of time. In order to promote transparency and to enable the market to best judge the performance of the ratings, the ERP shou....
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....awn during the financial year. 19.3.3. Income: An ERP shall disclose: 19.3.3.1. An ERP shall disclose the general nature of its compensation arrangements with the issuers. 19.3.3.2. its total receipt from ESG rating services and non-ESG rating services, 19.3.3.3. issuer wise percentage share of non- -ESG rating income of the ERP and its subsidiary to the total revenue of the ERP and its subsidiary from that issuer, and 19.3.3.4. names of the rated issuers who along with their associates contribute 10% or more of total revenue of the ERP and its subsidiaries. 20. Continuous Disclosures 20.1. An ERP shall make all the disclosures stipulated below on their websites and maintain the same at all times. 20.2. The rating history, Rating Rationales and Rating Reports, including those ratings which have been withdrawn, shall be available on the ERP's website. 20.3. Disclosures in case of delay in periodic review: Page 31 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 20.3.1. Regulation 28M of ....
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....rating rationales by ERPs. 21.1.3. ERPs may add footnotes in the disclosures mandated by SEBI for purpose of better understanding of methodology of such disclosure by stakeholder's subject to methodology explained being in line with the SEBI Regulations and circulars issued thereunder. Page 33 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Chapter IV: Internal Audit for ERPs 22. Internal Audit for ERPs: 22.1. The audit envisaged under Regulation 22 of the CRA Regulations shall include an internal audit to be undertaken in the following manner: 22.1.1. It shall be conducted on a yearly basis. 22.1.2. It shall be conducted by Chartered Accountants, Company Secretaries or Cost and Management Accountants who are in practice and who do not have any conflict of interest with the ERP. 22.1.3. It shall cover all aspects of ERP operations and procedures, including investor grievance redressal mechanism, compliance with the requirements stipulated in the SEBI Act, Rules and Regulations made there....
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....ocesses for operations that have been followed during the rating exercise. 23.3.5. Policy in respect of non-cooperation by the issuer, if applicable, including procedures to be followed for the same, have been complied with. 23.3.6. Review of ratings has been carried out as per the review policy of the ERP. 23.3.7. Verify the rating disclosures made by the ERPs on their website. 23.3.8. Comment on the conflict of interest, if any. 23.3.9. The audit shall also cover adherence to the prescribed methodology for calculation of transition rates. 23.3.10. Compliance by ERP with the provisions of all the Circulars shall be verified during yearly Internal Audit. 23.4. Action on the Internal Audit Report: 23.4.1. The ERP shall receive the report of the internal audit within two months from the end of the year. Page 35 of 60 5331 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 23.4.2. Upon receipt of the internal audit report, the Compliance Officer of the ERP shall provide detailed comments on each of the o....
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....rmation regarding Grievance Redressal Mechanism: 25.1. For information of all investors who deal/ invest/ transact in the market, the information as provided below shall be prominently displayed in the offices of the ERPs: Dear Investor, In case of any grievance / complaint against the ESG rating provider: Please contact Compliance Officer of the ESG rating provider (Name and Address) / email-id ([email protected]) and Phone No. - 91-XXXXXXXXXX. You may also approach CEO / Partner / Proprietor (Name) / email-id ([email protected]) and Phone No. 91-XXXXXXXXXX. - If not satisfied with the response of the ERP you can lodge your grievances with SEBI at http://scores.gov.in or you may also write to any of the offices of SEBI. For any queries, feedback or assistance, please contact SEBI Office on Toll Free Helpline at 1800 22 7575/1800 266 7575. Page 37 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 26. Guidelines on Outsourcing of Activities by ERPs 26.1. Outsourcing may be defined as the use of o....
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....d ensure to communicate such policies, procedures and code to all concerned; 27.5.2. at all times maintain high standards of integrity in the conduct of their business; 27.5.3. ensure fair treatment of their clients and not discriminate amongst them; 27.5.4. ensure that their personal interest does not, at any time conflict with their duty to their clients and client's interest always takes primacy in their advice, investment decisions and transactions; 27.5.5. make appropriate disclosure to the clients of possible source or potential areas of conflict of interest which would impair their ability to render fair, objective and unbiased services; 27.5.6. endeavor to reduce opportunities for conflict through prescriptive measures such as through information barriers to block or hinder the flow of information from one department/ unit to another, etc.; 27.5.7. place appropriate restrictions on transactions in securities while handling a mandate of issuer or client in respect of such issuer/security so as to avoid any conflict; 27.5.8. not deal in securities while in possession of material non published information 27.5.9. not to communicate the material non-published....
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..... Page 40 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India 29. Firewall between ERPs and their Affiliates: 29.1. The following measures are mandated to strengthen the firewall between SEBI- registered ERPs and their non-ERP entities (i.e. associates or subsidiary or group entity of the ERP): 29.1.1. ERPs shall formulate a policy on separation or firewall practices with the non- ERP entities and document the same. Such policy, and revisions thereto, shall be ratified by the Board of Directors of the ERPs and the policy may cover inter-alia the following: 29.1.1.1. Nature and extent of sharing of infrastructure, officials/employees or resources, if any, between the ERP and the non-ERP entity, including specification on whether such arrangement is temporary. 29.1.1.2. Measures taken by ERP to ensure the independence of its ESG rating process in view of the above arrangement with the non-ERP entity. 29.1.1.3. Guidance to employees on sharing of information or resources, if any, between the ER....
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....g. (iii) No order of restraint, prohibition or debarment has been passed against us by SEBI or any other regulatory authority or enforcement agency in any matter concerning securities laws or financial markets and such order isin force. (iv) No recovery proceedings have been initiated by SEBI against us and are pending. (v) No order of conviction has been passed against us by a court for any offence involving moral turpitude. (vi) No winding up proceedings have been initiated or an order for winding up has been passed against us. (vii) We have not been declared insolvent. Page 42 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India (viii) We have not been found to be of unsound mind by a court ofcompetent jurisdiction and no such finding is in force. (ix) We have not been categorized as a wilful defaulter. (x) We have not been declared a fugitive economic offender. 4. We have not been declared as not 'fit and proper person' by an order of SEBI. 5. No notice to show cause has been issued for ....
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....our registration as ESG rating Provider (Please enclose a clipping of the said public notice); g. we have notified the Depositories and all the stock exchanges where our client companies are listed about the surrender of our registration. 4. *We hereby request SEBI to dispense with the procedure laid down in Regulation 16(1) of the SEBI (Procedure for Holding Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 while processing our request for surrender of certificate of registration. Thanking you, Yours faithfully, Name: (Whole time/Managing Director/Principal Officer) * Please strike off, if not applicable. Page 44 of 60 E/S/G Pillar Factors 5331 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India List of ESG Parameters with an Indian Context Data Point Annexure 3 Environmen t Energy Environmen t Environmen t Environmen t Environmen t and Social Social Water Waste Manageme nt Land Use and Biodiversity CSR Inclusive Parameters Perform, Achieve and Trade (PAT) - D....
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.... of RPTS (as respective %age) in - Purchases Governance Related Party • • Sales Transaction • Loans & advances S • Investments (except for PSUs) 2 3 4 5 Guidance ERPs should consider India specific standards/laws/guidelines for rating of energy efficiency/green building initiatives (eg. GRIHA, IGBC or Energy Conservation Building Code (ECBC)etc.) ERPs should consider India specific standards/laws/guidelines for rating of air emissions (eg. ZED certifications, emission regulations under AIR Act, Continuous Emissions Monitoring System requirements etc.) ERPs should consider India specific standards/laws/guidelines for rating of GHG emissions (eg. Initiatives and targets under Perform, Achieve and Trade (PAT) scheme, National Action Plan on Climate Change, Environment Protection Act, Ozone Depleting Substances Rules, CPCB/SPCB Guidelines, India GHG Programme etc.) ERPs should consider India specific standards/laws/guidelines for rating of waste management (eg. Solid Waste Management Rules, Plastic Waste Management Rules, Bio-medical Waste Management Rules, Electronic Waste Management Rules, Hazardous Waste Management Rules, Fly Ash Util....
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....विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Annexure 6 Details of new ESG ratings assigned during year New Ratings assigned between Apr - Mar Sector Securities Listing Whether Whether Rating Final Rating Type, if Status the issuer review/appeal assigned applicable (Listed/ requested of the rating prior to Assign Propose for d to be review/ listed) a appeal of rating? was granted by ERP. request for review/ ed appeal by the issuer Page 50 of 60 S. Nam Ne of the issue r 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India Movement* of Each ESG rating Upgrades Rating Upgrades between Apr - Mar Sect or Type, if Status g applicab (Listed prior Security Listing Ratin Ratin Date g of post Rating le / to revisi Ration Propos revisi on ale for ed to on be Rating ☠listed) upgrad S Nam e of Nthe o issue r Downgrades Rating Upgrades between Apr- March Sect Securit Listing Ratin Ratin Date ....
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....er activities or the nature of activities that can be outsourced, the authorities who can approve outsourcing of such activities, and the selection of third party to whom it can be outsourced. For example, an activity shall not be outsourced if it would impair the supervisory authority's right to assess, or its ability to supervise the business of the ERP. The policy shall be based on an evaluation of risk concentrations, limits on the acceptable overall level of outsourced activities, risks arising from outsourcing multiple activities to the same entity, etc. 1.2 The Board shall mandate a regular review of outsourcing policy for such activities in the wake of changing business environment. It shall also have overall responsibility for ensuring that all ongoing outsourcing decisions taken by the ERP and the activities undertaken by the third-party, are in keeping with its outsourcing policy. 2. The ERP shall establish a comprehensive outsourcing risk management programme to address the outsourced activities and the relationship with the third party. 2.1 The ERP shall make an assessment of outsourcing risk which depends Page 54 of 60 5=31 à¤à¤¾à¤°à¤¤....
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....The ERP shall review the financial and operational capabilities of the third party in order to assess its ability to continue to meet its outsourcing obligations. 3. The ERP shall ensure that outsourcing arrangements neither diminish its ability to fulfill its obligations to customers and regulators, nor impede effective supervision by the regulators. 3.1 The ERP shall be fully liable and accountable for the activities that are being outsourced to the same extent as if the service were provided in- house. 3.2 Outsourcing arrangements shall not affect the rights of an investor or client against the ERP in any manner. The ERP shall be liable to the investors for the loss incurred by them due to the failure of the third party and also be responsible for redressal of the grievances received from investors arising out of activities rendered by the third party. 3.3 The facilities / premises / data that are involved in carrying out the outsourced activity by the service provider shall be deemed to be those of the registered ERP. The ERP itself and Regulator or the persons authorized by it shall have the right to access the same at any point of time. 3.4 Outsourcing arra....
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....liability of the third party to the ERP for unsatisfactory performance/other breach of the contract Page 57 of 60 5=31 à¤à¤¾à¤°à¤¤à¥€à¤¯ पà¥à¤°à¤¤à¤¿à¤à¥‚ति और विनिमय बोरà¥à¤¡ Securities and Exchange Board of India d) provides for the continuous monitoring and assessment by the ERP of the third party so that any necessary corrective measures can be taken up immediately, i.e., the contract shall enable the ERP to retain an appropriate level of control over the outsourcing and the right to intervene with appropriate measures to meet legal and regulatory obligations; e) includes, where necessary, conditions of sub-contracting by the third- party, i.e. the contract shall enable ERP to maintain a similar control over the risks when a third party outsources to further third parties as in the original direct outsourcing; f) has unambiguous confidentiality clauses to ensure protection of proprietary and customer data during the tenure of the contract and also after the expiry of the contract; g) specifies the responsibilities of the third party with res....