Which international standards can an Indian social, sustainability or sustainability-linked bond follow?
SEBI lets social, sustainability and sustainability-linked bonds carry the label only if the funded projects align with a recognised standard: ICMA principles or guidelines, the Climate Bonds Standard, ASEAN standards, EU standards, or any framework set by an Indian financial sector regulator. The issuer still follows that standard's own obligations.
The five accepted reference points
- International Capital Market Association principles and guidelines.
- The Climate Bonds Standard.
- ASEAN standards.
- European Union standards.
- Any framework or methodology specified by a financial sector regulator in India.
Two layers of rules
The SEBI framework is in addition to the NCS Regulations and the LODR Regulations. An issuer must make SEBI's disclosures and also meet the pre-issue and post-issue obligations of whichever standard the bond is aligned with. For sustainability-linked bonds, SEBI explicitly asks issuers to follow the post-issuance obligations of the chosen international standard.
What the reviewer confirms
The independent third-party reviewer's job is to ascertain that the labelled bond is in alignment with one of these recognised standards, including the project evaluation and selection process. The review can be a second party opinion, a verification, a certification or a scoring or rating, as recommended by ICMA or the chosen standard.
Small issuers
An issuer eligible to list on an SME exchange that issues ESG debt securities must meet the continuous disclosure requirements twice a year.
What Senseible does here
Senseible does not advise on bond frameworks. Its role is upstream: verified energy and emissions records from MSME bills that issuers and lenders can use as evidence.
Sources: SEBI circular, Framework for ESG Debt Securities (other than green debt securities), 5 June 2025
Last reviewed 2026-10-23.