SEBI vide circular dated November 24, 2022 has provided clarification regarding disclosures and compliance requirements for Issuance and Listing of Municipal Debt Securities under SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015. SEBI has received representations from market participants on the compliances an issuer under the ILMDS Regulations would have to undertake in case it is desirous of issuing a green debt security, in the absence of similar provisions in the ILMDS Regulations.
Accordingly, an issuer under the ILMDS Regulations may issue a green debt security if it falls within the definition of “green debt security”, as per Regulation 2(1)(q) of the NCS Regulations. Such issuer, shall, in addition to the requirements prescribed under the ILMDS Regulations and circulars issued there under, comply with the provisions for ‘green debt security’, as specified under the NCS Regulations and circulars issued thereunder.
