Sebi Tightens Rules for Green Debt Securities
Sebi plans to tighten norms for independent reviewers of green debt securities to enhance alignment with ESG-linked bonds. Proposed changes aim to increase reviewer independence, mitigate conflicts of interest, and improve disclosure standards. Public comments on this draft circular are welcome until August 21.
- Country:
- India
The Securities and Exchange Board of India (Sebi) announced plans to tighten regulatory standards for appointing independent reviewers for green debt securities. This move is intended to bring them in line with the criteria for other ESG-linked bonds.
A draft circular revealed Friday outlines the proposal, emphasizing the need for stricter guidelines similar to those introduced for ESG-linked securities under a circular from June 2025. This draft highlights shortcomings in current green bond regulations, particularly in areas such as reviewer independence and conflict of interest strategies.
Sebi's proposed norms require issuers to appoint independent entities, free from managerial ties, ensuring unbiased evaluations. The regulator is seeking public feedback on this initiative until August 21, promising a standardized framework for ESG evaluations in the future.
(With inputs from agencies.)
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