Markets regulator Sebi has proposed tweaking framework for ESG Rating Providers (ERPs), particularly for those using a subscriber-pays model, including an exemption from the requirement to disclose ESG ratings to stock exchanges. Additionally, the regulator has suggested that ERPs using a subscriber-pays model should share ESG (Environmental, Social, and Governance) rating reports with both subscribers and the rated issuer simultaneously. This policy should be publicly disclosed. ERPs should ensure that rated entities, their group companies, or associates cannot subscribe to their own ESG ratings, Sebi said in its consultation paper. These proposals are aimed at enhancing the clarity, transparency, and regulatory alignment of ESG ratings within Sebi's framework. The Securities and Exchange Board of India (Sebi) had introduced regulations for ERPs in July 2023, but ERPs have sought clarifications on certain provisions, particularly for those using a subscriber-pays model, and ...