The Securities and Exchange Board of India (Sebi) has proposed expanding its sustainable finance framework by introducing Social Bonds, Sustainable Bonds, and Sustainability-linked Bonds alongside existing Green Debt Securities, collectively termed ESG Debt Securities. This expansion aims to offer issuers more flexibility in funding projects that meet sustainable development goals and bridge the funding gap for such initiatives.
The proposal, influenced by industry feedback, also includes the introduction of Sustainable Securitised Debt Instruments, adhering to international and domestic sustainable finance standards. New disclosure requirements for these instruments will align Indian markets with global practices.
