Sebi Encourages Aifs To Push Esg Compliance Among Their Investee Companies

SEBI’s Ruchi Chojer besides reiterates that AIFs must play a cardinal domiciled successful driving ESG take among unlisted investee companies, particularly arsenic 40% of AIF superior comes from overseas investors who expect alignment pinch world disclosure standards.

Alternative Investment Funds (AIFs) must push ESG compliance among their investee companies, says Ruchi Chojer, Executive Director, SEBI. She besides says India’s cleanable power modulation cannot beryllium driven by listed companies alone, and AIFs must play a cardinal domiciled successful driving ESG take among unlisted investee companies—especially arsenic 40 per cent of AIF superior comes from overseas investors who expect alignment pinch world disclosure standards.

Speaking astatine nan IVCA Energy Summit 2025, Ruchi Chojer said, “As India undertakes its greenish transition, nan domiciled of superior markets, and peculiarly Alternative Investment Funds (AIFs), will beryllium critical. Financing long-gestation sectors for illustration grid modernisation, storage, and transmission requires diligent and risk-tolerant capital. SEBI has already enabled blended finance structures, allowing philanthropic and multilateral superior to put done inferior units successful AIFs. This is simply a captious measurement successful unlocking superior for nan power transition.”

She besides said that complete nan past 3 decades, India’s superior markets person evolved significantly, becoming 1 of nan world’s apical 10 equity markets pinch a marketplace capitalization exceeding $4 trillion. A full of astir Rs 93 lakh crore has been raised done some equity and indebtedness instruments, highlighting nan important domiciled of superior markets successful backing India’s economical description . On average, Indian companies person mobilized Rs 2.2 lakh crore annually done equity issuances. Notably, successful nan financial twelvemonth 2024–25, nan marketplace saw a record-breaking equity issuance of Rs 4.3 lakh crore, of which Rs 1.7 lakh crore came done Initial Public Offerings (IPOs). This underscores nan beardown appetite for equity financing and increasing investor information successful superior markets. The maturation of products for illustration Alternative Investment Funds (AIFs), which person surpassed $100 billion, besides reflects this maturity.

The number of unsocial investors successful nan securities marketplace ecosystem has astir tripled from astir 4.3 crore successful March 2019 to complete 13 crore by April 2025. This unprecedented maturation reflects rising financial awareness, expanding spot successful nan superior markets, and greater integer entree for investors crossed nan country.

Further, nan charismatic talked astir really regulatory activity has besides strengthened, pinch India now mounting world benchmarks alternatively than pursuing others. “Policy stableness has enhanced investor confidence, particularly among overseas portfolio investors, who person benefited from caller reforms specified arsenic easier entree to authorities securities and greenish bonds,” she added.

Published on: Jul 15, 2025 9:47 PM IST