SEBI Accredits IFSCA As Financial Sector Regulator
According to the new regulations, ESG ratings undertaken by an ERP under the guidelines of the IFSCA will be under its domain.
The International Financial Services Centres Authority was added to the list of financial sector regulators by the Securities and Exchange Board of India, according to a circular issued by Sarika Kataria, deputy general manager of debt and hybrid securities at the market regulator.
This followed the issue of a circular released on May 16, 2024, which stated that ESG rating providers may undertake or provide environmental, social and governance ratings of any product or issuer, based on the requirements of another financial sector regulator or authority, under the guidelines of the aforementioned regulator or authority.
"To enable ERPs to undertake ESG rating activities in the International Financial Services Centre, Gujarat International Finance Tech- City (IFSC-GIFT City), the International Financial Services Centres Authority (IFSCA) is hereby added to the list of financial sector regulators and authorities as specified in Annexure 4 of the aforesaid Master Circular for ERPs," the circular stated.
According to the new regulations, ESG ratings undertaken by an ERP under the guidelines of IFSCA will be under the domain of IFSCA.
The IFSCA has been given authorisation to deal with any issue arising from the activities of such SEBI-registered ERPs in the Indian Financial System Code, as codified under Sections 12 and 13 of the IFSCA Act.
IFSCA is also now responsible for dealing with complaints, enforcement actions and furnishing information to third parties, including statutory or judicial bodies, with respect to the services provided by the ERPs in the IFSC.
The regulations in the circular are to be effective immediately.
