SEBI Update: Review of Chapter IX – Green Debt Securities of the Operational Circular for issue and listing of Non-Convertible Securities (NCS), Securitised Debt Instruments (SDI), Security Receipts (SR), Municipal Debt Securities and Commercial Paper (CP) dated August 10, 2021 (hereinafter referred to as the ‘NCS Operational Circular’), as amended from time to time dated 6th February, 2023

SEBI vide its Circular dated 6 th February, 2023 undertook a review of the regulatory framework for green debt securities referred Chapter IX of the SEBI Circular SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021 (updated as on April 13, 2022).

Accordingly, the Chapter IX of the NCS Operational Circular shall be replaced with the following: Initial disclosure requirements for issue and listing of green debt securities An issuer desirous of issuing green debt securities shall make the following additional disclosures in the offer document for public issues / private placements: A statement on environmental sustainability objectives of the issue of green debt securities; Brief details of decision-making process followed/proposed for determining the eligibility of project(s) and/or asset(s), for which the proceeds are being raised through issuance of green debt securities, such as: Process followed/ to be followed for determining how the project(s) and/or asset(s) fit within the eligible green projects categories as defined under Regulation 2 (1) (q) of NCS Regulations, The criteria making the project(s) and/ or asset(s) eligible for using the green debt securities proceeds; and Details of taxonomies, green standards or certifications both Indian and global, if any referenced and the alignment of projects with said taxonomies, related eligibility criteria, and exclusion criteria, if applicable. d) Details of the alignment of the objective of the issue with the India’s Intended Nationally Determined Contributions in case of the proceeds raised though issuance of transition bonds. Details of the system/procedures to be employed for tracking the deployment of the proceeds of the issue. Details of the project(s) and/or asset(s) or areas where the issuer, proposes to utilise the proceeds of the issue of green debt securities, including towards refinancing of existing green project(s) and/or asset(s), if any. Details of an indicative estimate of distribution of proceeds raised though issuance of green debt security between financing and refinancing of project(s) and/ or asset(s); if applicable. Details of the intended types of temporary placement of the unallocated and unutilised net proceeds from the issue of green debt securities. Details related to the perceived social and environmental risks and proposed mitigation plan associated with the project(s) proposed to be financed/ refinanced through the proceeds from the issue of green debt securities. Th