%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(8).png "SEBI issues new ESG debt framework to regulate social, sustainability, and linked bonds")
Key Features:
a) Government audit
b) Internal audit team
c) Peer-reviewed journal publication
d) Third-party verification
- Expanded ESG categories beyond green bonds, covering social, sustainability, and sustainability-linked bonds.
- Strict disclosure norms to prevent “purpose-washing”, ensuring funds are used for intended ESG projects.
- Mandatory third-party verification to assess compliance with global ESG standards like ICMA Principles, Climate Bonds Standard, and ASEAN Standards.
- Annual impact reports required post-listing, detailing fund utilization and sustainability performance.
- Early redemption clause if funds are misused or projects fail to meet ESG objectives.
Question:
Q.1 Under the SEBI ESG debt framework, which of the following is mandatory to verify ESG compliance?a) Government audit
b) Internal audit team
c) Peer-reviewed journal publication
d) Third-party verification
Answer: d) SEBI mandates independent third-party verification to ensure that ESG debt instruments meet globally accepted standards like ICMA Principles, Climate Bonds Standard, and ASEAN Standards.
