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SEBI Introduces New Regulatory Framework for ESG Mutual Funds.

Banking & Finance | Dated: 24 Mar 2026

The Securities and Exchange Board of India (SEBI) has rolled out a stringent new regulatory framework governing Environmental, Social, and Governance (ESG) mutual funds. The rules mandate detailed monthly disclosures regarding the carbon footprint of portfolio companies.

🎯 Key Highlights:

  • The framework aims to curb greenwashing in the Indian financial markets.
  • Fund managers must invest at least 80 percent of assets in true ESG compliant stocks.
  • Independent third-party audits have been made compulsory every quarter.

💡 Other Important Facts:

  • Action: ESG Fund Rules.
  • Regulator: SEBI.
  • Focus: Preventing Greenwashing.

📚 Test Your Knowledge:

Which regulatory body recently introduced a stringent new regulatory framework to govern Environmental, Social, and Governance (ESG) mutual funds?

Correct Answer: SEBI

🚀 Quick Recap:

About SEBI

  • Chairperson - Madhabi Puri Buch
  • Sector - Securities and Capital Markets