Date: 2025-04-22Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred under section 30 read with sections 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby
## Report on the Securities and Exchange Board of India Credit Rating Agencies Second Amendment Regulations, 2025
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Credit Rating Agencies Second Amendment Regulations, 2025, based solely on the official gazette notification provided. This amendment focuses on Environmental, Social, and Governance (ESG) ratings, particularly concerning the "subscriber-pays business model." Key changes include clarifying the applicability of existing regulations to ESG ratings, introducing specific rules for ESG rating providers using the subscriber-pays model, and mandating increased transparency and disclosure in their operations. This report details these changes, their likely rationale, affected stakeholders, and potential impact.
**2. Introduction:**
The purpose of this report is to provide an informative overview of the Securities and Exchange Board of India (SEBI) Credit Rating Agencies Second Amendment Regulations, 2025. This analysis is based exclusively on the provided official gazette notification. The report aims to outline the key changes introduced by this amendment, its intended purpose, and its implications for relevant stakeholders within the credit rating industry, particularly those involved in ESG ratings.
**3. Policy Overview:**
* **Amendment to:** Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999.
* **Core Objective(s) (inferred from the provided text):** To regulate and provide clarity regarding the provision of Environmental, Social, and Governance (ESG) ratings by Credit Rating Agencies (CRAs), especially those employing a "subscriber-pays business model." The amendment aims to address potential conflicts of interest and ensure the integrity and transparency of ESG ratings.
**4. Background and Rationale:**
This amendment appears to be motivated by the growing importance of ESG factors in investment decisions and the need to ensure the reliability and objectivity of ESG ratings provided by CRAs. The text suggests concern about the subscriber-pays model, where the rated entity or its affiliates may subscribe to the ESG rating, potentially creating a conflict of interest. The amendment seems designed to mitigate these risks by introducing specific rules and disclosure requirements for this business model. The amendment also attempts to prevent regulatory overlap between SEBI and other financial regulators over ESG ratings.
**5. Key Provisions / Changes:**
The following changes are introduced by the amendment:
* **Regulation 2 (Definitions):**
* The definition of "Monopolies and Restrictive Trade Practices Act, 1969" is replaced with "Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018."
* **Regulation 28B (Governance):**
* A definition for "subscriber-pays business model" is inserted. This defines it as a model where revenue is derived from ESG ratings from subscribers like banks, insurance companies, pension funds, or the rated entity itself.
* **Regulation 28H (ESG Rating):**
* A proviso is added clarifying that these regulations do not preclude ESG rating providers from conducting ESG ratings under the guidelines of other financial sector regulators or authorities. The Explanation clarifies that these ratings are under the purview of the respective financial sector regulator or authority, and entities only rating products/issuers regulated by other agencies are not required to register with SEBI.
* **Regulation 28K (Disclosures):**
* Requires ESG rating agencies to disclose on their websites which financial regulator or authority is in charge of their ESG ratings.
* **Regulation 28KA (Subscriber-Pays Business Model):** This is a *new* regulation that specifies requirements for ESG rating providers using the subscriber-pays model:
* The ESG rating must be based only on publicly available information.
* If the rated entity, its group company, or associate subscribes to the rating, the fee paid must be the *lowest* fee payable by all subscribers.
* Only group companies or associates whose core business requires ESG ratings and are regulated by financial sector regulators may subscribe to the ESG rating, provided that there is no conflict of interest or abuse.
* **Regulation 28L (Rating Process):**
* An additional proviso is added requiring ESG rating providers using the subscriber-pays model to:
* Share the ESG rating report simultaneously with subscribers and the rated entity/issuer, providing two working days for comments.
* Include all comments/clarifications from the rated entity in an addendum to the report. If the rated entity has a different viewpoint on the data or assumptions in the report, the ESG rating provider, after considering the viewpoint, must either revise the report or issue an addendum with its remarks for circulation to all subscribers.
* Disclose the policy regarding the sharing of the report on their website.
* Provide a facility for the rated entity/issuer to seek clarification on the methodology or assumptions used.
**6. Target Audience and Stakeholders:**
The primary target audience is:
* Credit Rating Agencies (CRAs) operating in India.
* Specifically, CRAs providing Environmental, Social, and Governance (ESG) ratings.
* Issuers of securities that are being ESG-rated.
* Subscribers to ESG ratings, including banks, insurance companies, pension funds, and other investors.
* Financial sector regulators who also provide guidelines for ESG ratings.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is the responsible agency for implementing and enforcing these regulations.
* **Timelines:** The regulations come into force on the date of their publication in the Official Gazette (April 22, 2025).
* **Procedures:** The amendment outlines specific procedures for ESG rating providers using the subscriber-pays model regarding:
* Fee structures.
* Information sharing with rated entities.
* Disclosure requirements on websites.
* **Compliance:** ESG rating agencies must ensure compliance with the new regulations, including modifying their rating processes, disclosure policies, and contracts with subscribers, as applicable.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these amendments are likely to include:
* **Increased Transparency:** Enhanced disclosure requirements aim to improve transparency in the ESG rating process, particularly regarding potential conflicts of interest.
* **Reduced Conflicts of Interest:** The restrictions on the subscriber-pays model are intended to mitigate potential bias in ESG ratings.
* **Improved Reliability of ESG Ratings:** By requiring ratings to be based on publicly available information and mandating a review process with the rated entity, the amendments aim to improve the accuracy and reliability of ESG ratings.
* **Clearer Regulatory Landscape:** Providing clarity of which agencies should regulate which ESG ratings will ensure that companies and investors have clearer guidelines and reduce conflict.
* **Enhanced Investor Confidence:** Increased transparency and reliability in ESG ratings should enhance investor confidence in sustainable investing and encourage greater adoption of ESG principles.
**9. Conclusion:**
The Securities and Exchange Board of India Credit Rating Agencies Second Amendment Regulations, 2025, represent a significant step towards regulating and standardizing ESG ratings in India. The amendment focuses on addressing potential conflicts of interest and promoting transparency, especially within the subscriber-pays business model. These changes are likely to have a substantial impact on CRAs, rated entities, and investors, ultimately contributing to a more robust and reliable ESG investing ecosystem in India. The requirements for sharing reports and incorporating feedback into the assessment process should lead to more balanced and credible ratings.
Key Entities Referenced
SECURITIES AND EXCHANGE BOARD OF INDIA: A regulatory body. It is the main entity issuing regulations discussed in the document.
Securities and Exchange Board of India Act, 1992: Act that empowers the Securities and Exchange Board of India
Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999: Regulations being amended by the current document.
Securities and Exchange Board of India Credit Rating Agencies Second Amendment Regulations, 2025: The name of the regulations being introduced in the policy text.
Monopolies and Restrictive Trade Practices Act, 1969: An act being replaced in the regulations
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018: Regulations that are replacing 'Monopolies and Restrictive Trade Practices Act, 1969'
Companies Act, 2013: Act used to define 'associate' in relation to ESG rating provider regulations
ESG: Environmental, Social, and Governance related to ratings
28B: Regulation number within the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999
28H: Regulation number within the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999
28K: Regulation number within the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999
28KA: Regulation number within the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999
28L: Regulation number within the Securities and Exchange Board of India Credit Rating Agencies Regulations, 1999
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-23042025-262627
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
1947
स.ं 309] िई ददल्ली, मगं लिार, अप्रलै 22, 2025/ििै ाख 2, 1947
No. 309] NEW DELHI, TUESDAY, APRIL 22, 2025/VAISAKHA 2, 1947 sss
भारतीय प्रजतभजू त और जिजिमय बोड ड
अजधसचू िा
म ंबई, 22 अप्रलै , 2025
भारतीय प्रजतभूजत और जिजिमय बोड ड
(साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि) जिजियम, 2025
स.ं सबे ी/एलएडी-एिआरओ/िीएि/2025/242.—बोड,ड भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम,
1992 (1992 का 15) की धारा 11 के साथ पठित धारा 30 के तहत प्रदाि की गई िजियों का प्रयोग करते हुए, एतद्द्वारा
भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 का और संिोधि करिे के जलए
जिम्नजलजखत जिजियम बिाता ह,ै अथाडत:् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि) जिजियम,
2025 कहा िा सकेगा ।
2. ये जिजियम रािपत्र म ेंइिके प्रकाजित होिे की तारीख से लाग ू होंगे ।
3. भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 म,ें-
(1) जिजियम 2 में, उप-जिजियम (1) म,ें खडं (ड) म,ें जचह्िों, िब्दों तथा अंकों “ “समूह कंपजियााँ” स े
एकाजधकार तथा अिरोधक व्यापाठरक व्यिहार अजधजियम, 1969 (1969 का 54) में यथा पठरभाजित
समूह कंपजियााँ अजभप्रेत ह”ै के स्ट्थाि पर जचह्ि, िब्द तथा अंक “ “समूह कंपजियों” का अथड ह ै – ि े
2680 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
कंपजियााँ, िो भारतीय प्रजतभूजत और जिजिमय बोडड [पूाँिी का जिगडमि (इश्यू) और प्रकटीकरण अपेक्षाएाँ]
जिजियम, 2018 [सेबी (इश्य ू ऑफ कैजपटल एंड जडस्ट््लोज़र ठरक्वायरमेंट्स) रेग्यलू ेिन्स, 2018] म ें दी हुई
पठरभािा के अि सार समूह कंपजियााँ हों” आ िाएाँगे;
(2) जिजियम 28ख म,ें उप-जिजियम (1) म,ें
(क) खंड (ङ) म,ें िब्द “और” हट िाएगा;
(ख) खंड (च) म,ें जचह्ि “।” के स्ट्थाि पर जचह्ि “;” आ िाएगा; और
(ग) खंड (च) के बाद, जिम्नजलजखत खंड िोड़ा िाएगा, अथाडत,्-
“(छ) “ग्राहक करेगा अदा िाल े जबििेस मॉडल” का अथ ड ह ै – एक ऐसा जबििेस मॉडल, जिसमें
ईएसिी रेटटंग प्रदाता (प्रोिाइडर) को अपि े ग्राहकों (सब्स्ट्राइबर) [िो बैंक हो सकत े ह,ैं बीमा
कंपजियााँ हो सकती ह,ैं पेंिि फंड हो सकते ह,ैं या िही एंठटटी हो सकती ह ै जिसकी रेटटंग की िा
रही हो] को ईएसिी रेटटंग प्रदाि करके आमदिी हो ।”;
(3) जिजियम 28ि म,ें खंड (छ) में,
(क) जचह्ि “।” के स्ट्थाि पर जचह्ि “:” आ िाएगा;
(ख) जिम्नजलजखत परंत क िोड़ा िाएगा, अथातड ,्-
“परंत यह दक इि जिजियमों में दी हुई कोई भी बात दकसी ईएसिी रेटटंग प्रदाता (प्रोिाइडर) को
जित्तीय क्षेत्र के दकसी जिजियामक (रेग्यलू ेटर) या दकसी प्राजधकरण (अथॉठरटी) [जिसके बारे म ें
बोडड बताए] के संबंजधत ददिाजिदेिों (गाइडलाइन्स) के तहत दकसी प्रोड्ट या इश्यअ र
(जिगडमकता)ड की ईएसिी रेटटंग करिे से िहीं रोकेगी ।
स्ट्पष्टीकरण.- इस खंड के प्रयोििाथ,ड-
(क) जित्तीय क्षेत्र के दकसी जिजियामक (रेग्यलू ेटर) या प्राजधकरण (अथॉठरटी) के संबंजधत
ददिाजिदेिों के तहत ईएसिी रेटटंग प्रदाता (प्रोिाइडर) द्वारा की गई ईएसिी रेटटंग
जित्तीय क्षेत्र के संबंजधत जिजियामक (रेग्यूलेटर) या प्राजधकरण (अथॉठरटी) के दायरे म ें
आएाँगी;
िो एंठटटी बोडड के जिजियामक (रेग्यूलेटरी) दायरे में आि े िाले प्रोड्ट या इश्यअ र की
ईएसिी रेटटंग ि करिा चाहती हो, उसके जलए बोड ड स े रजिस्ट्टर होिा िरूरी िहीं होगा
।”;
(4) जिजियम 28ट म,ें
(क) खंड (थ) म,ें िब्द “और” हट िाएगा;
(ख) खंड (द) म,ें जचह्ि “।” के स्ट्थाि पर जचह्ि “; और” आ िाएगा; और
(ग) खंड (द) के बाद, जिम्नजलजखत खंड िोड़ा िाएगा, अथाडत,्-
“(ध) अपिी िेबसाइट पर यह बताएगा दक िह जिस-जिस प्रोड्ट या इश्यअ र को ईएसिी रेटटंग
प्रदाि करिे का कायड कर रहा ह,ै िह जित्तीय क्षेत्र के दकस जिजियामक (रेग्यलू ेटर) या प्राजधकरण
(अथॉठरटी) के दायरे म ें आता ह,ै और उसे जित्तीय क्षेत्र के उस जिजियामक (रेग्यलू ेटर) या
प्राजधकरण (अथॉठरटी) के दायरे में आि े िाले लाग ूकािूिी प्रािधािों का पालि करिा होगा ।”;
(5) जिजियम 28ट के बाद, जिम्नजलजखत जिजियम िोड़ा िाएगा, अथाडत,्-
“28टक. जिस ईएसिी रेटटंग प्रदाता (प्रोिाइडर) का “ग्राहक करेगा अदा िाला जबििेस मॉडल” हो, िह
यह स जिजित करेगा दक:
(क) दी गई ईएसिी रेटटंग केिल उसी िािकारी के आधार पर दी िाए, िो आम तौर पर उपलब्ध
हो;[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
(ख) यदद –
(i) जिस एंठटटी या इश्य अर की रेटटंग की िािी हो, िह खद ही ग्राहक (सब्स्ट्राइबर) हो; या
(ii) जिस एंठटटी की या जिस एंठटटी द्वारा िारी की गई प्रजतभूजतयों (जस्यूठरटीज़) की
ईएसिी रेटटंग की िािी हो, उस एंठटटी की समूह (ग्रप ) कंपिी या सहयोगी (असोजसएट)
ही ग्राहक (सब्स्ट्राइबर) हो,
तो ऐसे में इि ग्राहकों द्वारा अदा की िािे िाली फीस दसू रे सभी ग्राहकों द्वारा अदा की िाि े
िाली या अदा की गई फीस की त लिा में सबसे कम होगी;
(ग) जिस एंठटटी की या जिस एंठटटी द्वारा िारी प्रजतभूजतयों (जस्यूठरटीज़) की ईएसिी रेटटंग की
िा रही हो, उसकी केिल िही समूह (ग्रप ) कंपजिया ाँ या उसके िही सहयोगी (सहय ि /
असोजसएट) ईएसिी रेटटंग लिे े के जलए ग्राहक बि सकेंगे, जिन्ह ें अपिे कारोबार के जलए िह
ईएसिी रेटटंग लेिे की िरूरत हो और िो जित्तीय क्षेत्र के जिजियामक (जिजियामकों) के
जिजियामक (रेग्यूलेटरी) दायरे में आत े हों:
परंत यह दक इस तरह से ग्राहक बिकर सेिाएाँ लेिे की ििह से जहतों में कोई टकराि (जहत-
जिरोध) ि हो अथिा दकसी भी ििह स े कोई गलत इस्ट्तेमाल ि हो या ऐसा क छ भी होि े की
संभाििा ि हो ।
स्ट्पष्टीकरण.- इि जिजियमों के प्रयोििाथ,ड “सहयोगी” (सहय ि / असोजसएट) का िही अथड होगा
िो कंपिी अजधजियम, 2013 (2013 का 18) में ददया हुआ ह ै।”
(6) जिजियम 28ि म,ें उप-जिजियम (1) में, खडं (ञ) म,ें परंत क के बाद, जिम्नजलजखत दसू रा परंत क िोड़ा
िाएगा, अथाडत,्-
“परंत यह और दक जिस ईएसिी रेटटंग प्रदाता (प्रोिाइडर) का “ग्राहक करेगा अदा िाला जबििेस
मॉडल” हो, िह:
(i) अपि े ग्राहकों (सब्स्ट्राइबर) के साथ और जिस एंठटटी की रेटटंग की गई हो या जिस इश्य अर
की प्रजतभूजतयों (जस्यूठरटीज़) की रेटटंग की गई हो, उसके साथ ईएसिी रेटटंग की ठरपोटड
एक ही समय साझा करेगा, और जिस एंठटटी या इश्य अर की रेटटंग की गई हो उसे अपिी
ठटप्पजणयााँ देिे के जलए दो काय-ड ददिसों का समय देगा;
(ii) जिस एंठटटी की रेटटंग की गई हो उस एंठटटी से जिधाडठरत समय-सीमा के भीतर प्राप्त हर
ठटप्पणी या स्ट्पष्टीकरण ईएसिी रेटटंग की ठरपोटड में सलं ग्नक के तौर पर िाजमल करेगा और
ईएसिी रेटटंग की ठरपोटड में ददए गए डाटा आदद के जलहाि से उस एंठटटी या इश्य अर का
िज़ठरया अलग हो जिसकी रेटटंग की िा रही हो, तो ऐसे में ईएसिी रेटटंग प्रदाता
(प्रोिाइडर) उसके िज़ठरय े पर गौर करिे के बाद या तो ईएसिी रेटटंग की ठरपोटड म ें
संिोधि करेगा या दफर ईएसिी रेटटंग की ठरपोटड के संबंध में अलग से एक संलग्नक िारी
करेगा, जिसमें िे ठटप्पजणयााँ भी देगा िो ईएसिी रेटटंग प्रदाता (प्रोिाइडर) को उजचत लग,ें
और इस तरह बदलाि करिे के बाद ठरपोटड अपिे सभी ग्राहकों (सब्स्ट्राइबर) को भेिेगा;
(iii) जिस एंठटटी की रेटटंग की िाए या जिस इश्य अर की प्रजतभूजतयों (जस्यूठरटीज़) की रेटटंग
की िाए, उसके साथ और ग्राहकों (सब्स्ट्राइबर) के साथ ईएसिी रेटटंग की ठरपोटड साझा
करिे की िीजत अपिी िेबसाइट पर डलिाएगा; और
(iv) जिस एंठटटी की रेटटंग की िाए या जिस इश्य अर की प्रजतभूजतयों (जस्यूठरटीज़) की रेटटंग
की िाए उसके जलए एक ऐसी स जिधा उपलब्ध करिाएगा, जिसके िठरए िह कोई
स्ट्पष्टीकरण मााँग सकेगा, ईएसिी रेटटंग की पद्धजत के बारे में िाि सकेगा या यह िाि
सकेगा दक ईएसिी रेटटंग दकस आकलि के आधार पर की गई ह ै।”
बबीता रायड ू, कायडपालक जिदेिक4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
[जिज्ञापि-III/4/असा./42/2025-26]
पाद ठटप्पण :
1. भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 भारत के रािपत्र म ें प्रकाजित
तारीख 7 िल ाई 1999 के का.आ. स.ं 547(अ) के तहत िारी हुए थ े।
2. भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) जिजियम, 1999 तत्पिात-्
क. 28 माच ड 2000 को का.आ. स.ं 278(अ) द्वारा रािपत्र म ें प्रकाजित भारतीय प्रजतभूजत और जिजिमय बोड ड
(प्रजतभूजत अपीलीय न्यायाजधकरण को अपील) (संिोधि) जिजियम, 2000 द्वारा
ख. 29 मई 2001 को भारतीय प्रजतभूजत और जिजिमय बोडड (मध्यिर्तडयों द्वारा जिजिधाि सलाह) (संिोधि)
जिजियम, 2001, का.आ. स.ं 476(अ), द्वारा
ग. 27 जसतम्बर 2002 को भारतीय प्रजतभूजत और जिजिमय बोड ड (िांच अजधकारी द्वारा िांच करिे और िाजस्ट्त
अजधरोजपत करि े के जलए प्रदरया) जिजियम, 2002, का.आ. स.ं 1045(अ), द्वारा
घ. 19 फरिरी 2003 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2003, का.आ. स.ं 203(अ), द्वारा
ङ. 1 अिूबर 2003 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि)
जिजियम, 2003, का.आ. स.ं 1160(अ), द्वारा
च. 10 माच ड 2004 को भारतीय प्रजतभूजत और जिजिमय बोडड (उपय ि तथा उजचत व्यजि के जलए मािदंड)
जिजियम, 2004, का.आ. स.ं 398(अ), द्वारा
छ. 7 जसतम्बर 2006 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2006, का.आ. स.ं 1454(अ), द्वारा
ि. 26 मई 2008 को भारतीय प्रजतभूजत और जिजिमय बोडड (मध्यिती) जिजियम, 2008, स.ं
एलएडी/एिआरओ/िीएि/2008/11/126538, द्वारा
झ. 19 माच ड 2010 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2010, अजधसूचिा स.ं एलएडी/एिआरओ/िीएि/2009-2010/30/199044, द्वारा
ञ. 13 अप्रलै 2011 को भारतीय प्रजतभूजत और जिजिमय बोडड [क छ मध्यिर्तडयों (इंटरमीजडयरीज़) के
रजिस्ट्रीकरण की ितों म ें पठरितडि] (संिोधि) जिजियम, 2011, अजधसूचिा स.ं
एलएडी/एिआरओ/िीएि/2011-12/03/12650, द्वारा
ट. 5 ि लाई 2011 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (सिं ोधि) जिजियम,
2011, अजधसूचिा स.ं एलएडी/एिआरओ/िीएि/2011-12/10/21232, द्वारा
ि. 27 ददसम्बर 2011 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (दसू रा संिोधि)
जिजियम, 2011, अजधसूचिा स.ं एलएडी-एिआरओ/िीएि/2011-12/31/39022, द्वारा
ड. 23 मई 2014 को भारतीय प्रजतभूजत और जिजिमय बोड ड (फीस का संदाय) (संिोधि) जिजियम, 2014,
अजधसूचिा स.ं एल.ए.डी.-एि.आर.ओ./िी.एि./2014-15/03/1089, द्वारा
ढ. 8 ददसम्बर 2016 को भारतीय प्रजतभूजत और जिजिमय बोड ड [क छ मध्यिर्तडयों (इंटरमीजडयरीज़) के
रजिस्ट्रीकरण की ितों म ें पठरितडि] (संिोधि) जिजियम 2016, अजधसूचिा स.ं सेबी/एल.ए.डी.-
एि.आर.ओ./िी.एि./2016-17/023, द्वारा
ण. 6 माच,ड 2017 को भारतीय प्रजतभूजत और जिजिमय बोड ड (फीस का भ गताि और भ गताि का माध्यम)
(संिोधि) जिजियम, 2017, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/037 (तारीख
29 माच,ड 2017 की अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/038 के साथ पठित),
द्वारा[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 5
त. 30 मई 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2018, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018-15, द्वारा
थ. 11 जसतम्बर 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधारड ण एिेंजसयााँ) (दसू रा संिोधि)
जिजियम, 2018, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018/36, द्वारा
द. 23 जसतम्बर, 2019 को भारतीय प्रजतभूजत और जिजिमय बोड ड (साख जिधाडरण एिेंजसयााँ) (संिोधि)
जिजियम, 2019, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/34, द्वारा
ध. 17 अप्रलै , 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यलू ेटरी सैंडबॉ्स) (संिोधि) जिजियम,
2020, अजधसूचिा स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2020/10, द्वारा
ि. 5 मई, 2021 को भारतीय प्रजतभूजत और जिजिमय बोड ड (फीस का भ गताि और भ गताि का माध्यम)
(संिोधि) जिजियम, 2021, अजधसूचिा स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/23, द्वारा
प. 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2021, अजधसूचिा स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/29, द्वारा
फ. 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेटरी सैंडबॉ्स) (संिोधि) जिजियम,
2021, स.ं सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा
ब. 24 िििरी, 2022 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि)
जिजियम, 2022, स.ं सेबी/एल.ए.डी.-एि.आर.ओ/िी.एि./2022/69, द्वारा
भ. 17 िििरी, 2023 को भारतीय प्रजतभूजत और जिजिमय बोड ड [मध्यिर्तडयों (इंटरमीजडयरीज़) के जियंत्रण म ें
पठरितडि)] (संिोधि) जिजियम, 2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/115, द्वारा
म. 3 िल ाई, 2023 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/136, द्वारा
य. 4 िल ाई, 2023 को भारतीय प्रजतभूजत और जिजिमय बोड ड (जििाद स लझािे की िैकजल्पक व्यिस्ट्था) (संिोधि)
जिजियम, 2023, स.ं सेबी/एलएडी-एिआरओ/िीएि/2023/137, द्वारा
यक. 8 िल ाई, 2024 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2024, स.ं सेबी/एलएडी-एिआरओ/िीएि/2024/191, द्वारा
यख. 28 ििम्बर, 2024 को भारतीय प्रजतभूजत और जिजिमय बोड ड (दस्ट्तािेिों को प्रमाजणत करिा) (संिोधि)
जिजियम, 2024, स.ं सेबी/एलएडी-एिआरओ/िीएि/2024/212, द्वारा
यग. 21 माचड, 2025 को भारतीय प्रजतभूजत और जिजिमय बोडड (साख जिधाडरण एिेंजसयााँ) (संिोधि) जिजियम,
2025, स.ं सेबी/एलएडी-एिआरओ/िीएि/2025/236, द्वारा
संिोजधत हुए थ े ।
******
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 22nd April,s 2025
SECURITIES AND EXCHANGE BOARD OF INDIA (CREDIT RATING AGENCIES) (SECOND
AMENDMENT) REGULATIONS, 2025
No. SEBI/LAD-NRO/GN/2025/242.—In exercise of the powers conferred under section 30 read
with sections 11 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
makes the following regulations to further amend the Securities and Exchange Board of India (Credit
Rating Agencies) Regulations, 1999, namely: –
1. These regulations may be called the Securities and Exchange Board of India (Credit Rating
Agencies) (Second Amendment) Regulations, 2025.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999, ─
(1) in regulation 2, in sub-regulation (1), in clause (m), the words “Monopolies and Restrictive Trade
Practices Act, 1969 (54 of 1969)” shall be substituted with the words “Securities and Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018”;
(2) in regulation 28B, in sub-regulation (1),
(a) in clause (e), the word “and” shall be omitted;
(b) in clause (f), the symbol “.” shall be substituted with the symbol “;”; and
(c) after clause (f), the following clause shall be inserted, namely, -
“(g) “subscriber-pays business model” means a business model where the ESG rating
provider derives its revenues from ESG ratings from subscribers including banks, insurance
companies, pension funds, or the rated entity itself.”;
(3) in regulation 28H, in clause (g),
(a) the symbol “.” shall be substituted with the symbol “:”;
(b) the following proviso shall be inserted, namely, -
“Provided that nothing contained in these regulations shall preclude an ESG rating provider
from carrying out ESG rating of products or issuers under the respective guidelines of a
financial sector regulator or any authority as may be specified by the Board.
Explanation. ─ For the purposes of this clause, -
(a) the ESG ratings undertaken by an ESG Rating Provider under the respective guidelines of
a financial sector regulator or authority shall be under the purview of the respective
financial sector regulator or authority;
(b) an entity that does not propose to undertake ESG rating of products or issuers regulated
by the Board may not be required to seek registration with the Board.”;
(4) in regulation 28K,
(a) in clause (q), the word “and” shall be omitted;
(b) in clause (r), the symbol “.” shall be substituted with the word and symbol “; and”; and
(c) after clause (r), the following clause shall be inserted, namely, -
“(s) state on its website the financial sector regulator or authority under whose purview it
undertakes ESG ratings for each product or issuer and shall comply with the applicable laws
administered by such financial sector regulator or authority.”;
(5) after regulation 28K, the following regulation shall be inserted, namely, –
“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;[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 7
(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).”;
(6) in regulation 28L, in sub-regulation (1), in clause (j), after the proviso, the following second
proviso shall be inserted, namely, -
“Provided further that an ESG rating provider following a subscriber-pays business model
shall:
(i) share the ESG rating report with its subscribers and the rated entity or the issuer whose
securities have been rated at the same time and provide two working days to such rated
entity or the issuer to provide its comments;
(ii) all comments or clarifications received from the rated entity within the specified timeline
shall be included in the addendum to the ESG rating report by the ESG rating provider
and if the rated entity or the issuer has a different viewpoint on the data or assumptions
stated in the ESG rating report, the ESG rating provider, after taking into account the
said viewpoint, shall either revise the ESG rating report or issue an addendum to the ESG
rating report with its remarks, for circulation to all its subscribers, as considered
appropriate by the ESG rating provider;
(iii) disclose the policy regarding sharing of ESG rating report with the rated entity or the
issuer whose securities have been rated and the subscribers on its website; and
(iv) provide a facility to the rated entity or the issuer whose securities have been rated to seek
any clarification, including the ESG rating methodology or assumptions.”.
BABITHA RAYUDU, Exe. Director
[ADVT.-III/4/Exty./42/2025-26]
Footnotes:
1. The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 were
issued under S.O. No. 547 (E) dated July 7, 1999 published in the Gazette of India.
2. The Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999 were
subsequently amended on—
a. March 28, 2000 by the Securities and Exchange Board of India (Appeal to Securities Appellate
Tribunal) (Amendment) Regulations, 2000 published in Official Gazette vide S.O. No. 278(E).
b. May 29, 2001, by the Securities and Exchange Board of India (Investment Advice by
Intermediaries) (Amendment) (Regulations), 2001 vide S.O. No. 476 (E).
c. September 27, 2002 by the Securities and Exchange Board of India (Procedure for Holding
Enquiry by Enquiry Officer and Imposing Penalty) Regulations, 2002 vide No. S.O. No.1045
(E).
d. February 19, 2003 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2003 vide S.O. No. 203 (E).
e. October 1, 2003 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Second Amendment) Regulations, 2003 vide S.O. No. 1160 (E).
f. March 10, 2004 by Securities and Exchange Board of India (Criteria for Fit and Proper Person)
Regulations, 2004 vide S. O. No. 398 (E).
g. September 7, 2006 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2006 vide S. O. No. 1454(E).8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
h. May 26, 2008 by the Securities and Exchange Board of India (Intermediaries) Regulations, 2008
vide no. LAD/ NRO/GN/2008/11/126538.
i. March 19, 2010 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2010 vide Notification No. LAD-NRO/GN/2009-2010/30/199044.
j. April 13, 2011 by the Securities and Exchange Board of India (Change in Conditions of
Registration of Certain Intermediaries) (Amendment) Regulations, 2011 vide Notification No.
LAD/ NRO/ GN/ 2011- 12/03/12650.
k. July 5, 2011 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2011 vide Notification No. LAD/NRO/GN/2011-12/10/21232.
l. December 27, 2011 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Second Amendment) Regulations, 2011 vide Notification No. LAD/NRO/GN/2011-
12/31/39022.
m. May 23, 2014 by the Securities and Exchange Board of India (Payment of Fees and Mode of
Payment) (Amendment) Regulations, 2014 vide notification no. LAD-NRO/GN/2014-
15/03/1089.
n. December 8, 2016 by the Securities and Exchange Board of India (Change in Conditions of
Registration of Certain Intermediaries) (Amendment) Regulations, 2016 vide Notification No.
SEBI/LAD/NRO/GN/2016-17/023.
o. March 6, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of
Payment) (Amendment) Regulations, 2017 vide notification no. SEBI/LAD/NRO/GN/2016-
17/037 read with notification no. SEBI/LAD/NRO/GN/2016-17/38 dated March 29, 2017.
p. May 30, 2018 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2018 vide Notification No. SEBI/LAD-NRO/GN/2018-15.
q. September 11, 2018 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Second Amendment) Regulations, 2018 vide Notification No. SEBI/LAD-NRO/GN/2018/36.
r. September 23, 2019 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2019 vide Notification No. SEBI/LAD-NRO/GN/2019/34.
s. April 17, 2020 by the by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2020 vide Notification No. SEBI/LAD-NRO/GN/2020/10.
t. May 5, 2021 by the Securities and Exchange Board of India (Payment of Fees and Mode of
Payment) (Amendment) Regulations, 2021 vide Notification No. SEBI/LAD-NRO/GN/2021/23.
u. August 3, 2021 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2021 vide Notification No. SEBI/LAD-NRO/GN/2021/29.
v. August 3, 2021 by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30.
w. January 24, 2022 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2022, vide No. SEBI/LAD-NRO/GN/2022/69.
x. January 17, 2023 by the Securities and Exchange Board of India (Change in Control in
Intermediaries) (Amendment) Regulations, 2023, vide No. SEBI/LAD-NRO/GN/2023/115.
y. July 3, 2023 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2023, vide No. SEBI/LAD-NRO/GN/2023/136.
z. July 4, 2023 by the Securities and Exchange Board of India (Alternative Dispute Resolution
Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD–NRO/GN/2023/137.
za. July 8, 2024 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2024, vide No. SEBI/LAD-NRO/GN/2024/191.
zb. November 28, 2024 by the Securities and Exchange Board of India (Attestation of Documents)[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 9
(Amendment) Regulations, 2024, vide No. SEBI/LAD-NRO/GN/2024/212.
zc. March 21, 2025 by the Securities and Exchange Board of India (Credit Rating Agencies)
(Amendment) Regulations, 2025 vide No. SEBI/LAD-NRO/GN/2025/236.
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