New Delhi. The Securities and Exchange Board of India (SEBI) said on Thursday that issuers of municipal debt securities can also issue green bonds, but for this they will have to ensure compliance with the rules related to the issue and listing of non-convertible securities. .
The SEBI (Issue and Listing of Municipal Debt Securities) or ILMDS Regulations lay down the framework for the issuance and listing of municipal debt securities. It states that issuers of municipal debt securities will have to make continuous disclosures and meet compliance requirements.
It does not explain ‘Green Debt Security’. However, SEBI (Issue and Listing of Non-Convertible Securities) or NCS Rules have defined Green Debt Security. In 2021, came out with regulatory guidelines mandating initial and ongoing disclosures by issuers or proposers to issue green debt securities. In a circular, Sebi said, an issuer can also issue green debt securities under the ILMDS regulations, provided they satisfy the definition of ‘green debt securities’ under the NCS regulations.