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Request for inputs: SEBI's Consultation Paper on Green and Blue Bonds as a mode of Sustainable Finance.
Request for inputs: SEBI's Consultation Paper on Green and Blue Bonds as a mode of Sustainable Finance.

August 10, 2022

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Securities and Exchange Board of India (SEBI) has released a consultation paper on Green and Blue Bonds as a mode of Sustainable Finance.

Sustainable Finance is the process of taking due account of environmental, social and governance (ESG) considerations while making investment decisions in the financial sector, leading to increased longer-term investments into sustainable economic activities and projects.

The need for sustainable finance was felt in the aftermath of repeated environmental disasters and extreme weather events, corporate finance being driven purely by profit motives and corporate governance norms being followed as the exception rather than the norm. This has been bolstered by the demand for sustainable avenues of investments from a section of the new- age investors as well as with the substantial rise in the prominence of the Stakeholder’s theory over Shareholder’s theory.

SEBI has suggested strengthening the framework for green bonds by amplifying the definition of green debt securities and enhancing disclosures.

In this regard, we would request you to send your inputs/views on the proposed amendments before August 22, 2022 to garima@nasscom.in and tejasvi@nasscom.in.


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Tejasvi

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