Brief Overview:
SEBI has established a framework for the issuance of social bonds, sustainability bonds, and sustainability-linked bonds on recognised stock exchanges. These instruments will be referred to as Environment, Social, and Governance (ESG) Debt Securities. SEBI will periodically specify these frameworks, including adaptations of international standards to meet Indian requirements, along with the necessary disclosure obligations.
Technical Details:
Key elements of the framework to enhance transparency, credibility, and accountability:
1) mandatory initial and continuous disclosure requirement
2) appointment of independent third-party reviewers
3) stringent measures to curb purpose-washing.
The framework aligns with international standards like ICMA Principles, Climate Bonds Standard, and aims to promote transparent and credible ESG Debt Securities issuance while protecting investor interests through robust regulatory oversight.
JC Takeaway:
By introducing social, sustainability, and sustainability-linked bonds alongside green debt securities the framework aims to boost investor confidence and encourage sustainable finance in India, aligning with the country’s sustainable development goals.
This initiative not only encourages responsible investment practices but also encourages transparency and accountability through mandatory disclosure requirements.
For further details, please see:
For any queries/clarifications, please feel free to ping us and we will be happy to chat:
