Regulation 28U - Restriction on shareholding in an ESG rating provider - Securities and Exchange Board of India (Credit Rating Agencies) Regulations, 1999

1 [ Restriction on shareholding in an ESG rating provider 28U . (1) An ESG rating provider shall not: (a) directly or indirectly, hold ten per cent. or more shareholding or voting rights in any other ESG rating provider, or (b) have representation on the board of directors of any other ESG rating provider: Provided that an ESG rating provider may, with the prior approval of the Board, in the interest of investors, market integrity and stability, acquire shares or voting rights exceeding ten per cent. in any other ESG rating provider if such acquisition results in change in control in the ESG rating provider whose shares are being acquired. (2) A shareholder holding ten per cent. or more shares or voting rights in an ESG rating provider shall not hold ten per cent. or more shares or voting rights, directly or indirectly, in any other ESG rating provider: Provided that the said restriction shall not apply to holdings by pension funds, insurance schemes and mutual fund schemes. Explanation . For the purpose of these regulations, a ESG rating provider means a ESG rating provider registered with the Board. ] *************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/136 dated 03-07-2023