SEBI issues consultation paper to expand scope of sustainable finance
This story was originally published at 23:04 IST on 16 August 2024
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MUMBAI – The Securities and Exchange Board of India today proposed to expand the sustainable finance framework in the Indian securities market by including social bonds, sustainable bonds, and sustainability-linked bonds, according to a consultation paper. The regulator has sought comments on the same by Sep 6.
The framework to raise funds via such bonds will be according to international standards which would be adjusted to suit Indian requirements, SEBI said. The regulator suggested the guidelines of the International Capital Market Association for green bonds, social bonds, sustainability bonds, sustainability bonds or the climate bond standard of the Climate Bond Initiative.
SEBI also proposed to introduce sustainable securitised debt instruments. The regulator defines these as instruments which have sustainable finance credit facilities as the underlying debt, and satisfies such international frameworks as adapted or adjusted to suit Indian requirements, which are specified by SEBI from time to time.
SEBI has suggested international frameworks, such as guidelines of the International Capital Market Association and from the Loan Syndications and Trading Association, and sustainability-linked loans principles published by the Asia Pacific Loan Market Association, could be considered to build a framework for these instruments.
The regulator has also proposed an independent external review for environmental, social, and governance debt securities and sustainable securities debt instruments. The external review could be a second party opinion, verification, certification and scoring, or rating. End
Reported by Kshipra Petkar
Edited by Deepshikha Bhardwaj
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