SEBI allows fund houses to launch multiple ESG schemes

In a recent circular, SEBI announced that mutual fund houses can now launch more than one equity scheme under the thematic category of Environmental, Social and Governance (ESG) mutual funds. However, fund houses have been mandated to keep these schemes distinct from each other. It is also mandatory for them to make suitable disclosures of the investment strategy and asset allocation. The new subcategories are applicable with immediate effect. The announcement is in follow-up to the consultation paper that SEBI issued in March 2023. What does this mean Fund houses will now have an opportunity to launch more funds. It