Guidelines On Green Bonds : SEBI
The Securities and Exchange Board of India released operational guidelines for green bonds. The guidelines include dos and don’ts related to green debt securities.
Guidelines:
- No misleading labels shall be used
- Tradeoffs shall not be hidden. Tradeoff means giving up one to gain another.
- Pick random data to highlight research practices
- From now on SEBI will check if the green debt security issuing company is making the transition towards a greener path.
- The regulator will watch over the investment made by the company or the measures taken by the company to promote a green environment.
- Also, the regulator will check if the measures adopted by the company are bringing environmental impacts.
- It will keep a constant eye on the contributions made by the company is making India a sustainable economy.
- The issuer cannot use the funds raised from green bonds for other purposes. Other purposes mean investments or actions that are not related to the environment.
