Author: Sonalben Bhoya, Student at Gujarat National Law University, Gandhinagar
ABSTRACT
Globally, corporate behaviour and investment decisions are being increasingly influenced by Environmental, Social, and Governance (ESG) concerns. This trend has led to a growing focus on ESG considerations within securities regulations in India. Traditionally, securities regulations in India focused primarily on financial disclosures and corporate governance. However, the growing importance of ESG factors has prompted regulators to incorporate these considerations into the regulatory framework. This shift aims to promote sustainable business practices, enhance investor protection, and align India’s securities market with global trends. The regulatory framework, spearheaded by the Securities and Exchange Board of India (SEBI), aims to enhance sustainability reporting standards and promote responsible investment practices. ESG regulations in India cover a wide array of factors, including environmental concerns like climate change and pollution, social issues such as labour practices and human rights, and governance matters like transparency and ethical business conduct. SEBI has been actively involved in promoting ESG investing through various initiatives, mandating ESG disclosures for listed companies and introducing guidelines for ESG reporting. This paper explores the impact of ESG on Indian regulations, particularly the Securities and Exchange Board of India’s (SEBI) introduction of the Business Responsibility and Sustainability Reporting (BRSR) framework. The BRSR mandates ESG disclosures for the top 1,000 listed companies, aiming to enhance transparency, promote sustainable practices, and align India’s securities market with global trends.
