Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>On 25 January, the Securities and Exchange Board of India (SEBI) issued a consultation paper regarding a regulatory framework governing ESG ratings and ratings providers in India.</li>
<li>SEBI's framework aims to standardise ESG ratings, increase transparency, and reduce conflicts of interest to improve the quality and usefulness of ESG ratings and derivative products.</li>
<li>SEBI-Registered Credit Rating Agencies such as <a href="https://www.smartkarma.com/entities/crisil-ltd" target="_blank" data-smartkarma-citation="entities:15699:1" rel="noopener">CRISIL (CRISIL IN)</a> and <a href="https://www.smartkarma.com/entities/icra-ltd" target="_blank" data-smartkarma-citation="entities:12560:1" rel="noopener">ICRA (ICRA IN)</a> are the focus, but other entities and products (e.g., ESG indexes/indexers) are under its purview.</li>
</ul>


On 25 January, the Securities and Exchange Board of India (SEBI) issued a consultation paper regarding a regulatory framework governing ESG ratings and ratings providers in India.
SEBI's framework aims to standardise ESG ratings, increase transparency, and reduce conflicts of interest to improve the quality and usefulness of ESG ratings and derivative products.
SEBI-Registered Credit Rating Agencies such as CRISIL (CRISIL IN) and ICRA (ICRA IN) are the focus, but other entities and products (e.g., ESG indexes/indexers) are under its purview.


Regulating ESG Ratings in India: Outline of SEBI's Proposed Regulatory Framework

India Financials

Saumya Agarwal

Equity Bottom-Up

CRISIL, India’s largest credit rating agency, reported its September quarter (Q3 2020) results. All the three segments- Ratings, Research and Advisory were adversely impacted by the weak economic activity and subdued capital market issuances. This was partly offset by the ‘Greenwich’ business, which CRISIL acquired in Q1 2020

CRISIL, India’s largest credit rating agency, reported its September quarter (Q3 2020) results. All the three segments- Ratings, Research and Advisory were adversely impacted by the weak economic activity and subdued capital market issuances. This was partly offset by the ‘Greenwich’ business, which CRISIL acquired in Q1 2020

CRISIL Q3 2020 Results: Ratings and Advisory Revenue Shrink but Research Grows, Led by Greenwich

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25% to 35% and has asked the Securities and Exchange Board of India (SEBI) to consider raising the threshold. If and when implemented, promoters will need to either sell down their stake to meet the 35% threshold or buy back their stock and delist from the exchanges.In this piece, we look at multinational companies that have subsidiaries listed in India that do not meet the 35% threshold currently, and possible action on their part based on the current stock price, delisting guidelines and other considerations.

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25% to 35% and has asked the Securities and Exchange Board of India (SEBI) to consider raising the threshold. If and when implemented, promoters will need to either sell down their stake to meet the 35% threshold or buy back their stock and delist from the exchanges.In this piece, we look at multinational companies that have subsidiaries listed in India that do not meet the 35% threshold currently, and possible action on their part based on the current stock price, delisting guidelines and other considerations.

Specialist in Indian Banking and Economic Research

Hemindra Hazari

Thematic (Sector/Industry)

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the capital market.  The cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero per cent interest. Media, capital market analysts and prominent bankers have jumped on the bandwagon of moral hazard, ruining the loan payment discipline amongst farmers and apprehensions that the sacrosanct fiscal deficit may be breached as a consequence of such ‘populist’ policies. The BJP electoral promise raises some issues which need to be explored further on whether the central government has the fiscal space to provide for a total farm waiver and whether the criticism of moral hazard is credible.

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the capital market.  The cause for concern is the BJP’s promise to the UP electorate to waive off all farm loans and provide fresh loans at zero per cent interest. Media, capital market analysts and prominent bankers have jumped on the bandwagon of moral hazard, ruining the loan payment discipline amongst farmers and apprehensions that the sacrosanct fiscal deficit may be breached as a consequence of such ‘populist’ policies. The BJP electoral promise raises some issues which need to be explored further on whether the central government has the fiscal space to provide for a total farm waiver and whether the criticism of moral hazard is credible.

U.P. Loan Waiver: 'Populist' or a Necessity?

Asia focused research insights & advisory, Asia Advisors

Vinay Patel

Asia focused research insights & advisory

Asia Advisors

Asia Advisors is an independent financial advisory and research firm working closely with corporates and institutions to provide consulting solutions & research insights. We provide advisory services including capital solutions, business strategy and investment insights.
Firm is headed by Vinay Patel who has close to two decades of experience in research and business development at large, international investment banks such as HSBC and ICICI Securities. Led research efforts in areas of Macroeconomics, Asset Allocation & Investment Strategy for close to a decade in global & domestic research teams. As a business head in Singapore, advised top global investment management firms & Portfolio managers in Asia for India related investments.
Vinay was recently joined by Swapnil Manish, an investment banker and ex-ecommerce entrepreneur with more than 12 years of experience. Swapnil was the TMT banker at BNP Paribas and was part of several large M&A and ECM transactions (Bharti-Zain, Bharti Infratel IPO, Schneider-Zicom among several others). He's also had a stint as an ecommerce entrepreneur having launched & led Mumbai's first online grocery player.

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this win to ease Modi's chances for another term at national elections in 2019 and that would give him total 7 year period to push for reforms (In his victory speech Modi himself said he is now looking for delivering by 2022 - the 75th year of Indian Independence). Amidst the euphoria of Modi's victory, we would like to highlight some of the ground realities…

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

India

Crisil Ltd. operates a credit rating agency in India. The Company specializes in the areas of risk identification, classification and assessment, across a broad spectrum of industries.

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Crisil Ltd (CRISIL IN)

Regulating ESG Ratings in India: Outline of SEBI's Proposed Regulatory Framework

SEBI's framework for regulating ESG ratings in India aims to improve the quality of ESG ratings and related investment products, and to create an...

Kyle Rudden

CRISIL Q3 2020 Results: Ratings and Advisory Revenue Shrink but Research Grows, Led by Greenwich

CRISIL, India’s largest credit rating agency, saw all its three segments- Ratings, Research and Advisory, getting adversely impacted by the...

Saumya Agarwal

India - Stake Sale or Delisting?

In Friday's Union Budget presentation, the Finance Minister proposed increasing the Minimum Public Shareholding (MPS) in listed companies from 25%...

Brian Freitas

U.P. Loan Waiver: 'Populist' or a Necessity?

Post the Bharatiya Janata Party’s (BJP) decisive victory in the Uttar Pradesh (UP) state elections, alarm bells have commenced tolling in the...

Hemindra Hazari

Investors Need To Be Patient With Reform Momentum Even As Modi Win Ensures Policy Continuity

Expectations on economic reforms from Modi government are running high after the big win in Uttar Pradesh. Political analysts are expecting this...

Asia Advisors

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52-week Range

Market Cap (USDm)

P/E

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