Green Debt Securities: blue, yellow and transition bonds
In the backdrop of increasing interest in sustainable finance around the globe, SEBI reviewed the regulatory framework pertaining to green debt securities. The scope of the definition of green debt security was enhanced by including new modes of sustainable finance in relation to pollution prevention and control, eco–efficient products, etc., and the concept of blue, yellow and transition bonds was introduced. Further, the regulatory framework for green debt securities was strengthened, laying out the responsibilities of the issuers of such securities and asking issuers to appoint a third-party reviewer for the post-issue management of the use of proceeds, to undertake and disclose impact reporting in line with the updated Green Bond Principles recognized by IOSCO.