Regulation 28B - Definitions - Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

1 [ Definitions 28B . (1) In this chapter, unless the context otherwise requires: - (a) client means any person who avails or proposes to avail the services of an ESG rating provider; (b) environmental, social, and governance ratings , or ESG ratings means the rating products that are marketed as opinions about an issuer or a security, regarding its ESG profile or characteristics or exposure to ESG risk, governance risk, social risk, climatic or environmental risks, or impact on society, climate and the environment, that are issued using a defined ranking system of rating categories, whether or not these are explicitly labelled as ESG ratings ; (c) ESG rating provider means a person which is engaged in, or proposes to engage in, the business of issuing ESG ratings; (d) liquid net worth means net worth deployed in liquid assets which are unencumbered; Explanation . For the purposes of this chapter, 2 [ (i) liquid asset means a low risk asset such as cash, units of overnight or liquid mutual fund schemes, fixed deposits of scheduled commercial banks, government securities, treasury bills, repo on government securities and repo on corporate bonds that may be easily converted into cash in a short period of time. ] (ii) Net Worth means the aggregate value of the paid up equity capital and free reserves (excluding reserves created out of revaluation), reduced by the aggregate value of accumulated losses and deferred expenditure not written off, including miscellaneous expenses not written off; (e) issuer means any person who is, or whose securities are, rated or proposed to be rated by an ESG rating provider; and (f) promoter shall have the meaning assigned to it in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/136 dated 03-07-2023 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2024/191 dated 08-07-2024 before it was read as, (i) liquid asset is a low risk asset that can easily be converted into cash in a short period of time, such as cash, fixed deposits, government securities, treasury bills and repo on government securities.