Chairman Ajay Tyagi said SEBI will issue new guidelines “soon”, with a view to achieving greater transparency and accountability from listed companies on ESG.
SEBI (Securities and Exchange Board of India) plans to issue new guidelines to promote better ESG disclosures by listed companies in India.
According to SEBI chairman Ajay Tyagi, Indian investors have showed an increased interest in ESG investment, in line with global trends.
Speaking at a recent conference, he pointed to the increase in ESG focused mutual fund schemes from just three schemes ten months ago to nine ESG schemes today.
In the entire financial year 2019-2020, about INR 21 billion was invested in ESG schemes in India, compared to INR 38 billion invested in such schemes in the first ten months of the 2020-21 financial year (to 31 Jan 2021).
“While the trend appears to be on the rise, we still have a long way to go compared to global levels,” Tyagi said.
“With a view to meeting the increasing investor demand for ESG related information, SEBI is in active discussions with various stakeholders to bring grater granularity in disclosures by listed companies in the ESG space so that investors can make well informed decisions.”
Tyagi said SEBI will issue new guidelines “soon”, with a view to achieving a “much higher level of transparency and accountability from listed companies in the ESG arena”.