look news india
SEBI has proposed measures to facilitate environmental, social and governance (ESG) disclosures by listed companies and their value chain partners. SEBI has proposed to make the disclosures voluntary for the first year instead of making them a requirement for value chain partners to follow or explain. The new proposal aims to make it easier. The new environmental norms require assurances on greenhouse gas emissions, water wastage, consumption and treatment, waste management, etc. The market regulator plans to make disclosures on ESG metrics mandatory only for value chain partners who individually account for two per cent or more of a company's purchases or sales by value.
As per the earlier directive, the top 250 listed companies are required to disclose ESG metrics for their value chain partners in their annual reports from the financial year 2024-25. This disclosure is for value chain partners who collectively engage in 75 per cent of sales or purchases. The new directions aim to make this compliance easier. These disclosures will be key indicators related to the Business Responsibility and Sustainability Reporting (BRSR) core.
Valuation criteria for AIFs will change
SEBI plans to apply the International Private Equity and Venture Capital Valuation Guidelines (IPEV) to unlisted securities of Alternative Investment Funds (AIFs). In June 2023, SEBI issued a circular mandating valuation of assets held by AIFs. The AIF industry had requested the change to address differences in valuation criteria under the Mutual Fund Regulations and AIF Regulations.