Regulation 28KA - Regulatory Framework for ESG Rating under the Subscriber-Pays Model - Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

1 [28KA . An ESG rating provider following a subscriber-pays business model shall ensure that: (a) the ESG rating assigned is based only on publicly available information; (b) The fee paid by the subscriber is the lowest fee payable or paid amongst all the subscribers, if: (i) the rated entity or issuer is a subscriber itself; or (ii) the group company or associate of an entity is a subscriber to the ESG rating of such entity or the securities issued by such entity; (c) only group companies or associates, of an entity, whose core business requires ESG ratings of such entity or the securities issued by such entity, and are regulated by financial sector regulator(s) may subscribe to the ESG rating: Provided that by such subscription, there shall be no conflict of interest or any potential or actual abuse or misuse. Explanation. For the purpose of this regulation, associate shall have the same meaning as defined under the Companies Act, 2013 (18 of 2013). ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2025/242 dated 22-04-2025