India’s New Green Business Rules: What Most SEBI Lawyers Observe

In a move that has caught the attention of every SEBI lawyer in India, the country’s market regulator has rolled out new rules for how companies should report their environmental and social responsibilities. These updates, announced in October 2024, are reshaping how SEBI lawyers advise their corporate clients on sustainability reporting.

Vaneesa Agrawal, an expert SEBI lawyer specializing in corporate governance, via her Thinking Legal article, explains “These ESG regulations are no longer just about profits — it’s about responsible business practices.”

For SEBI lawyers across the country, the Securities and Exchange Board of India’s (SEBI) updated Business Responsibility and Sustainability Reporting (BRSR) framework presents both challenges and opportunities. Leading law firms with SEBI expert lawyers are already working to help their clients navigate these new requirements.

Simplified Reporting: A SEBI Lawyer’s Perspective

The most significant change that SEBI expert lawyers are highlighting to their clients is the simplified reporting process. Companies, as of the 2024 updates in the regulations, only need to report on business partners who make up 2% or more of their total sales or purchases. This is a major shift that SEBI lawyers say will make compliance easier for their corporate clients.

“The regulations make ESG reporting more manageable while maintaining its effectiveness.”, Vaneesa Agrawal notes.

SEBI lawyers specializing in corporate compliance are particularly interested in SEBI’s new Green Credit Program. Under this initiative, companies can earn credits for environmental activities like tree planting. As many SEBI lawyers point out, this creates new opportunities for companies to demonstrate their commitment to sustainability.

Understanding SEBI’s New Assessment Framework

SEBI lawyers highlight that the regulatory body’s transition from “Assurance” to “Assessment” has significant implications for corporate reporting.

Vaneesa Agrawal, an expert SEBI lawyer explains, “This change gives companies more room to tell their sustainability story. It’s about meaningful reporting rather than just checking boxes.”

The new framework introduces important considerations for listed companies. According to SEBI lawyers, the updated assessment approach focuses on qualitative aspects of sustainability reporting rather than purely quantitative metrics.

Some of the top considerations as highlighted by SEBI lawyers are,

The BRSR code framework mandates disclosures on 9 KPIs related to ESG attributes. SEBI lawyers note that these include greenhouse gas emissions, water usage, energy consumption and employee well-being.

SEBI lawyers state that as per these updates, companies must disclose ESG-related information about their value chain partners on a comply-or-explain basis.

The new regulation, as noted by SEBI lawyers, also encourages companies to engage in environmentally sustainable practices through the reporting of Green Credits.

SEBI lawyers point out that this approach is on a timeline basis. The assurance requirements will gradually expand from the top 250 to the top 1000 listed entities by FY 2026–27.

“The considerations in the new ESG regulations reflect SEBI’s commitment and business’ transparency and accountability in sustainability reporting.”

- Vaneesa Agrawal, an expert SEBI lawyer

Research conducted by leading SEBI lawyers indicates that companies implementing these changes see a benefit by focusing on corporate compliance, and transparency over procedural formalities.

It is also to be noted that many law firms with expert SEBI lawyers are now expanding their ESG advisory services to help clients adapt to these changes. The focus, according to SEBI expert lawyers, should be on transparency and meaningful reporting rather than mere compliance.

Another point that SEBI lawyers are particularly interested in is the implementation timeline consideration. Let’s dig a bit deeper on that point.

SEBI Lawyers Break Down the New Implementation Timeline

SEBI lawyers note the phased implementation approach SEBI has taken. Starting with the top 150 listed companies and gradually expanding to the top 1000 by FY 2026–27, this rollout gives SEBI lawyers time to help their clients prepare for the changes.

SEBI expert lawyers explain that the gradual approach allows companies to build robust reporting systems without rushing. This is particularly important for smaller companies that might need more time to adapt their reporting processes.

“The phased implementation shows SEBI’s practical understanding of business realities, especially as it gives companies the breathing room they need to get it right.”

- Vaneesa Agrawal, founder of Thinking Legal

Future Impact of SEBI’s ESG Regulations

Further analysis by SEBI lawyers and major firms shows that environmental and social responsibility metrics are becoming increasingly central to corporate decision-making. According to several SEBI expert lawyers tracking implementation patterns, companies are already integrating these requirements into their core business strategies.

The regulations represent more than just new compliance requirements. Expert SEBI lawyers like Vaneesa Agrawal observe that more and more companies are working towards developing more sophisticated approaches to sustainability documentation. SEBI lawyers also observe that this evidence-based approach to sustainability is creating measurable impact across various sectors.

Industry reports suggest that companies implementing these changes early, are gaining competitive advantage in the international markets. For instance, some of the advantages as highlighted by SEBI lawyers are,

Attracting Global Investors

Improves stakeholder trust

Enhanced credibility and reliability

Regulatory support for sustainable practices

Current trends as reviewed by SEBI expert lawyers, suggest that Indian companies are viewing these requirements as opportunities rather than obligations. SEBI lawyers who are analyzing implementation patterns have noted positive correlations between early adoption and improved corporate valuation. Indian companies can turn these regulatory requirements into opportunities for growth and positive impact.

These regulations are creating a new era of corporate responsibility in India. Smart companies will see this as an opportunity, not just an obligation.