India's markets regulator on Friday proposed to expand sustainable finance framework in the country's securities market by including a new investment product, Paralel.Az reports citing Reuters.

The Securities and Exchange Board of India (SEBI) proposed a new concept called sustainable securitized debt instruments or green securitization, which the regulator defined as having sustainable finance credit facilities as the underlying debt.

SEBI added that for raising sustainable finance, in addition to existing green debt securities, issuers may also raise funds through social bonds, sustainable bonds and sustainability-linked bonds.

Sustainable finance is the practice or process of investors taking environmental, social and governance (ESG) factors into consideration when making financial decisions.