Sebi Allows Credit and ESG Rating Agencies to Operate Under IFSCA

The Securities and Exchange Board of India (Sebi) has permitted credit rating agencies and ESG rating providers to conduct their activities under the International Financial Services Centres Authority (IFSCA). This measure enables these agencies to operate within IFSC-GIFT City in Gujarat, with IFSCA overseeing their regulatory compliance.

The Securities and Exchange Board of India (Sebi) has granted permission for credit rating agencies and ESG rating providers to function under the International Financial Services Centres Authority (IFSCA). This move aims to facilitate their operations within the IFSC-GIFT City located in Gujarat, as stated in circulars issued by Sebi on Friday.

With IFSCA now included in the list of financial regulators, these agencies can undertake rating and ESG rating activities in the designated IFSC area. According to Sebi's directives, any ESG ratings executed under IFSCA's guidelines will fall under its jurisdiction.

Additionally, IFSCA will handle any emerging issues from the activities of Sebi-registered credit rating and ESG rating agencies within the IFSC. The regulatory body will also manage complaints, enforcement actions, and provide necessary information to third parties, such as statutory or judicial bodies, related to the services offered by the agencies in the IFSC. The circular is effective immediately.