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SEBI has constituted a committee on ESG related matters in the securities market.
Navneet Munot, CEO, HDFC Mutual Fund will head this 19-members committee. Other representatives from the MF industry are Priyanka Dhingra, ESG Analyst, SBI Mutual Fund and Harsha Upadhyaya, CIO, Kotak Mutual Fund.
The committee will be responsible for giving its recommendations on enhancements in business responsibility, ESG ratings and ESG investing. Here are key highlights of the responsibility of the committee which are relevant for mutual funds:
- Enhancing disclosures specific to ESG funds
- Mitigating risk of mis-selling of ESG funds
- Setting standards for ESG funds
- Examining norms followed by ESG funds
- Prescribing ESG disclosure for all mutual fund schemes
