SEBI/HO/DDHS/DDHS -PoD -3/P/CIR/2025/007 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/DDHS/DDHS -PoD -3/P/CIR/2025/007 To, All Registered ESG Rating Providers, All Listed Entities, All Recognized Stock Exchanges, All Registered Depositories Madam/ Sir, Sub: Timeline for Review of ESG Rating pursuant to occurrence of 'Material Events ' Para 10.1 of the Master Circular for ESG Rating Providers (ERPs) SEBI/HO/DDHS/DDHS -POD3/P/CIR/2024/45 dated May 16, 2024 ("Master Circular") provides the following in respect of material events requiring a review of the ESG ratings: " 10.1.1. Regulation 28L(g) of CRA Regulations require an ERP to have efficient systems to track material developments related to environmental, social and governance factors to ensure timely and accurate ESG ratings. 10.1.2. Material developments in this respect shall be any event that results in a change of the ESG profile of the rated company. Such material developments shall include, but not be restricted to, publication of Business Responsibility and Sustainability Reporting (BRSR) or controversy/ penalty in environmental, social or governance areas. 10.1.3. ERPs shall carry out a review of the ESG ratings upon the occurrence of or announcement/ news of such material developments, and immediately, but not later than 10 days of occurrence of the said event." January 17 , 2025 ERPs have made a representation to SEBI , highlighting the operational challenges faced in undertaking review of ESG ratings for a large pool of listed companies pursuant to publication of BRSR by such companies , within the specified timeline of 10 days . Considering the same , in order to promote Ease of Doing Business, it has been decided to provide relaxation in the timeline for review of ESG rating pursuant to publication of BRSR. Accordingly, Para 10.1.3. of the Master Circular stands modified as