IFSCA Issues Circular in Regard to the Guidance Framework on Sustainable and Sustainability Linked Lending by Financial Institutions

Sustainable and Sustainability

On 20th April 2023, the International Financial Services Centres Authority (IFSCA) in regard to the Guidance Framework on Sustainable and Sustainability Linked Lending by Financial Institutions. The particular circular was issued with reference to a prior issued circular number
F. No 584/ IFSCA/Sustainable Finance- LF/2022-23/001 titled ‘Guidance Framework on Sustainable and Sustainability linked lending by financial institutions’ (hereinafter referred to as “said circular”) issued by the IFSCA (hereinafter referred to as “Authority”) on 26th April 2022 and the subsequent FAQs on the said circular issued on 22nd February 2023.

Pursuant to the FAQs, the Authority received specific queries related to the methodology to be adopted by the IBUs and FC/FUs for the purpose of computing the five per cent target as specified in para 1 of the said circular.

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