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Issuers of municipal debt securities can issue green bonds, says Sebi
Capital markets regulator Sebi on Thursday said issuers of municipal debt securities can issue green bonds in compliance with rules governing issue and listing of non-convertible securities.
A green bond is like any other bond where a debt instrument is issued by an entity for raising funds from investors. The proceeds of a green bond offering are 'ear-marked' for use towards financing green projects.
Sebi (Issue and Listing of Municipal Debt Securities) or ILMDS rules provide the framework for issuance and listing of municipal debt securities. It also specified the continuous disclosure and compliance requirements to be complied with by issuers of Municipal Debt Securities.
The ILMDS rules do not define 'green debt security'.
However, Sebi's (Issue and Listing of Non-Convertible Securities) or NCS norms defines green debt security. Further the regulator, in 2021, came out with operational guidelines providing the initial and continuous disclosure requirements for entities issuing