India’s market regulator will adopt a principles-based, rather than prescriptive, approach in its first set of rules, expected over the next few months, for rating a company on ESG issues, two sources said. The move by the Securities and Exchange Board of India (SEBI) would allow such scores to be assigned to more companies, making it increasingly possible for investors to assess businesses with a yardstick seen to be growing in importance. The regulator will canvass public opinion on draft rules set to be unveiled in the next two to three months, which it aims to finalise this year. That follows steps by global regulators such as the European Securities and Market Authority (ESMA), the Securities Exchange Commission in the United States and the China Securities Regulatory Commission (CSRC).

Source: ESG News