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SEBI ESG Debt Securities Framework Effective 5 June 2025

16 June 20251 min read
BANKING & FINANCESEBI ESG DebtSecuritiesFramework Effective5 June 202516 June 2025safalsetu.com

Why in the news

SEBI tightened oversight of ESG bonds to check how raised funds are used.

Key facts

  • Covers green, social, sustainability and sustainability-linked bonds.
  • Independent reviewers must verify ESG claims.
  • Disclosures on project selection, fund deployment and impact.
  • Early redemption if the issuer strays from ESG goals.

Concerns

  • Big firms can afford verification; smaller issuers may resort to green-washing or stay away.
  • Experts want real due diligence, not paper compliance.

Exam angle

  • Regulator: SEBI; effective 5 June 2025.
  • Key term: purpose-washing.

Test yourself

1. SEBI's new ESG-labelled bond framework came into effect on which date?

The framework is effective from 5 June 2025.

2. What does "purpose-washing" in the context of ESG bonds mean?

It is misstatement of environmental or social impact of proceeds.

3. Under SEBI's ESG bond framework, what must issuers appoint to verify ESG claims?

Mandatory third-party verification by independent reviewers.

This topic is part of Daily Current Affairs 15 & 16 June 2025 (14 topics).

All topics of the dayDay quizJune 2025

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