SEBI enhances disclosures norms for issue and listing of green debt securities
- Blog|News|Company Law|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 7 February, 2023
Latest from Taxmann
Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/023, Dated 06.02.2023
With a view to align the extant framework for green debt securities (GDS) with the updated Green Bond Principles (GBP), SEBI has amended Chapter IX of the Non-Convertible Securities (NCS) Operational circular. As per the amended norms, an issuer desirous of issuing GDS is required to make additional disclosures in the offer document for public issues/private placements.
The disclosures such as a statement on environmental sustainability objectives of green debt securities, details of the system/procedures, details of an indicative estimate of the distribution of proceeds raised through the issuance of green debt security between financing and refinancing of projects, details of the intended types of temporary placement of the unallocated and unutilised net proceeds from the issue of green debt securities etc.
Further, additional continuous disclosures are also to be made. In the annual report, details of the deployment of the mitigation plan for the perceived social and environmental risks are to be mentioned. Also, information pertaining to reporting of the environmental impact of the projects financed by green debt securities is to disclose.
Also, an issuer is now mandatorily required to appoint an independent third-party reviewer/certifier for green debt security for reviewing/certifying the processes. The said requirement of appointing a third-party reviewer/ certifier is applicable on a ‘comply or explain’ basis for a period of two years. The circular shall come into force for all issues of green debt securities launched on or after April 1, 2023.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
