The Security and Exchange Board of India (SEBI) vide its circular dated February 03’ 2023 issued guidelines for the DOs and Don'ts of listing Green Debt Securities. Regulation 2(1) (q) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 defines ‘Green Debt Security’.
However, the legal framework for ‘Green Debt Securities’ was reviewed recently and there were certain concerns raised with respect to Greenwashing. The generally accepted definition for “Greenwashing” is making false, misleading, unsubstantiated or otherwise incomplete claims about the sustainability of a product, service or business operation.”
Therefore, SEBI issued certain guidelines to avoid the occurrence of greenwashing:
The said circular is in the exercise of Section 11(1) of the Securities and Exchange Board of India, 1992 read with Regulation 55(1) of the SEBI (Issue and Listing of Non- convertible Securities) Regulations, 2021 in order to protect the investors and for smooth functioning of the securities market.