SEBI has tightened regulations for ESG (Environmental, Social, Governance) funds, mandating clearer investment definitions and requiring a higher minimum allocation to genuinely 'sustainable' assets to combat .
65-80%
Mandatory 'Sustainable' Asset Allocation
India's market regulator, SEBI (Securities and Exchange Board of India), has today introduced stricter norms for Environmental, Social, and Governance (ESG) mutual funds. The new regulations aim to prevent 'greenwashing' – misleading claims about environmental friendliness – by requiring funds to have a clearer definition of their investment strategies. Crucially, they mandate a higher minimum percentage of assets to be invested in demonstrably sustainable companies and projects. This move is set to bring more transparency and accountability to India's burgeoning ESG investment landscape, ensuring that funds truly align with their stated sustainability objectives.
💭 If you're wondering…
ESG stands for Environmental, Social, and Governance. It refers to a set of criteria investors use to screen potential investments for their sustainability and ethical impact.
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