India’s market regulator, the Securities and Exchange Board of India (SEBI), will review its ESG (Environmental, Social, and Governance) disclosure rules for listed companies, following feedback from the industry about the increasing compliance burden.

Speaking at an event on Tuesday, SEBI Chairperson Madhabi Puri Buch said that the current requirements, especially those related to supply chain disclosures, may be too demanding for some companies. “We will now take a fresh look at the ESG disclosures and the approach will be more nuanced,” she said.

Currently, the top 1,000 listed companies by market capitalization are required to file Business Responsibility and Sustainability Reports (BRSR). In 2023, SEBI expanded the scope, asking the top 250 companies to include data covering 75% of their supply chains by 2025–26. However, the regulator recently delayed the implementation timeline, acknowledging challenges in readiness.

SEBI’s upcoming review aims to ensure that disclosures are meaningful and not just a box-ticking exercise. The regulator also plans to focus on building capacity among stakeholders to support smoother adoption.

India’s ESG reporting framework is under growing global scrutiny. Earlier this year, Moody’s Ratings placed India in the “high risk” category on environmental and social parameters. SEBI’s reassessment comes at a time when regulators around the world, including in the EU and US, are also re-evaluating ESG frameworks to make them more practical and effective.

The review is expected to begin next month and may lead to revised guidelines that balance transparency with feasibility.