SEBI Expands Sustainable Finance Framework in the Securities Market
SEBI Expands Sustainable Finance Framework
The Securities and Exchange Board of India (SEBI) has taken a significant step in the sustainable finance framework by introducing a new category of financial instruments in the securities market.
New Categories of Bonds
- Social Bonds
- Sustainable Bonds
- Sustainability-Linked Bonds
- Green Debt Securities
This expansion aims to provide issuers the flexibility needed to raise funds for projects that are in line with their environmental, social, and governance (ESG) objectives.
Addressing Funding Gaps
SEBI's consultation paper indicates this will collectively present an opportunity for issuers, aimed at supporting sustainable projects and closing the funding gap related to the Sustainable Development Goals.
Market Participants' Input
Feedback from various market players, including the Confederation of Indian Industry, emphasized the necessity for expanding the regulatory framework pertaining to sustainable finance. This aligns with global practices and provides a broader scope for raising sustainable finance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.