SEBI Reforms - ESG Related Requirements for Mutual Funds

Abstract

The world of investment is seeing a proliferation of ESG fund schemes. In India too while there have not been too many schemes, the interest in the same is increasing. With avenues to invest in ESG products increasing, by way of schemes, there is a necessity that standardization be infused into the same as well as transparency. SEBI, the regulator that has always been at the forefront of reform, has adopted a holistic approach in framing ESG related regulation. The last piece in the ESG regulation puzzle was disclosures and standardization in relation to ESG schemes, which has been recently brought in by SEBI. This article elucidates the reform.