Scheme for Trading and Settlement of Sovereign Green Bonds in the IFSC

The Reserve Bank of India has introduced the ‘Scheme for Trading and Settlement of Sovereign Green Bonds in the International Financial Services Centre (IFSC) in India’. The Scheme shall apply to investments in Sovereign Green Bonds issued by the Government of India by eligible investors in the IFSC in India.

Scheme details

(a) Investors can participate in the primary auctions of securities undertaken by the Reserve Bank and transact in the secondary market for securities in the IFSC, as per the terms and conditions defined in the Scheme.

(b) Eligible IBUs are not permitted to participate in the primary auctions under the Scheme. Eligible IBUs can undertake transaction in the secondary market as per the terms and conditions defined in the Scheme.

(c) For operationalising the Scheme,

1. The authorised depository and the authorised clearing corporation(s) shall each open a CSGL account and a current account with the Reserve Bank; and
2. The authorised depository and the authorised clearing corporation(s) may open an INR account with a commercial bank in India.
3. The authorised depository and authorised clearing corporation(s) shall abide by the ‘Constituents’ Subsidiary General Ledger Account: Eligibility Criteria and Operational Guidelines’ dated September 22, 2021, as amended from time to time, issued by the Reserve Bank. Any failure to do so shall attract appropriate action by the Reserve Bank including imposition of penalty under Section 30 of the Government Securities Act, 2006.
4. The authorised depository and authorised clearing corporation(s) shall also abide by the applicable terms and conditions for opening of the current account, as may be specified by the Reserve Bank.