The Securities and Exchange Board of India (SEBI) has released new rules for ESG investment funds in the country. ESG funds will now be required to invest at least 80% of their assets in securities aligned with their specific strategies, and asset managers must provide monthly ESG scores for the holdings. SEBI has also introduced a new ESG investment sub-category, allowing mutual funds to offer multiple ESG schemes to investors, whereas previously, they could offer only one scheme. The new measures aim to facilitate green financing with enhanced disclosures and mitigate the risk of greenwashing. The rules define several ESG strategies, and funds must invest at least 80% of their assets in securities that align with their chosen strategy, with the remainder invested in other assets. Additionally, at least 65% of assets must be invested in companies reporting on comprehensive Business Responsibility and Sustainability Reports with assured disclosures.

Source: ESGToday