TMI BlogReview of Chapter IX – Green Debt Securities of the Operational Circular for issue and listing of Non-Convertible Securities (NCS), Securitised Debt Instruments (SDI), Security Receipts (SR), Municipal Debt Securities and Commercial Paper (CP) dated August 10, 2021 (hereinafter referred to as the ‘NCS Operational Circular’), as amended from time to timeX X X X Extracts X X X X X X X X Extracts X X X X ..... e SEBI Circular SEBI/HO/DDHS/P/CIR/2021/613 dated August 10, 2021 (updated as on April 13, 2022) specifies the following with reference to issuers of green debt securities: (a) Additional disclosure requirements in the offer document; (b) Continuous disclosure requirements in annual report and financial results; and (c) Responsibilities of the issuer 2. In the backdrop of increasing interest in sustainable finance in India as well as around the globe, and with a view to align the extant framework for green debt securities with the updated Green Bond Principles (GBP) recognised by IOSCO, SEBI undertook a review of the regulatory framework for green debt securities. 3. Accordingly, the Chapter IX of the NCS Operational Circular shall be replaced with the following: Initial disclosure requirements for issue and listing of green debt securities 1. An issuer desirous of issuing green debt securities shall make the following additional disclosures in the offer document for public issues / private placements: 1.1 A statement on environmental sustainability objectives of the issue of green debt securities; 1.2 Brie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply with the provisions and achieve full compliance by two years from the date of issuance of the circular. In case the entity is not able to achieve full compliance with the provisions till such time, the issuer shall in its annual report, explain the reasons for such non-compliance/ partial compliance and the steps initiated to achieve full compliance Continuous disclosure requirements for listed green debt securities: 2. An issuer who has listed green debt securities, shall provide following additional disclosures along with its annual report and financial results: 2.1 Utilisation of the proceeds of the issue, as per the tracking done by the issuer using the internal process as disclosed in offer document. Utilisation of the proceeds shall be verified by the report of an external auditor, to verify the internal tracking method and the allocation of funds towards the project(s) and/or asset(s), from the proceeds of green debt securities. 2.2 Details of unutilized proceeds including the temporary placement/utilization of unallocated and unutilized proceeds from each ISIN of green debt security issued by the issuer. 2.3 The following additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermine the continuing eligibility of the project(s) and/or asset(s). This includes, without limitation statement on the environmental objectives of the green debt securities and a process to determine whether the project(s) and/or asset(s) meet the eligibility requirements; 4.2 Ensure that all project(s) and/or asset(s) funded by the proceeds of green debt securities, meet the documented objectives of green debt securities; 4.3 Utilise the proceeds only for the stated purpose, as disclosed in the offer document; and 4.4 Ensure compliance with the SEBI circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/020 dated February 03, 2023 on Dos and don ts relating to green debt securities to avoid occurrences of greenwashing 4. The provisions of this circular shall come into force for all issues of green debt securities launched on or after April 1, 2023. 5. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, to protect the interest of investors in securities a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) Third party water (iv) Seawater / desalinated water (v) Others Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) Total volume of water consumption (in kilolitres) Water intensity per rupee of turnover (Water consumed / turnover) Water intensity (optional) the relevant metric may be selected by the entity Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. 4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation. 5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... then provide details. 8. Provide details related to waste management by the entity, in the following format: Parameter FY _____ (Current Financial Year) FY ______ (Previous Financial Year) Total Waste generated (in metric tonnes) Plastic waste (A) E-waste (B) Bio-medical waste (C) Construction and demolition waste (D) Battery waste (E) Radioactive waste (F) Other Hazardous waste. Please specify, if any. (G) Other Non-hazardous waste generated (H). Please specify, if any. (Break-up by composition i.e. by materials relevant to the sector) Total (A+B + C + D + E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ails of project EIA Notification No. Date Whether conducted by independent external agency (Yes / No) Results communicated in public domain (Yes / No) Relevant Web link 12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: S. No. Specify the law / regulation / guidelines which was not complied with Provide details of the non- compliance Any fines / penalties / action taken by regulatory agencies such as pollution control boards or by courts Corrective action taken, if any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) To Seawater - No treatment - With treatment please specify level of treatment (iv) Sent to third-parties - No treatment - With treatment please specify level of treatment (v) Others - No treatment - With treatment please specify level of treatment Total water discharged (in kilolitres) Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. 3. Water withdrawal, consumption and discharge in areas of water stress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - No treatment - With treatment please specify level of treatment (v) Others - No treatment - With treatment please specify level of treatment Total water discharged (in kilolitres) Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. 4. Please provide details of total Scope 3 emissions its intensity, in the following format: Parameter Unit FY _____ (Current Financial Year) FY ______ (Previous Financial Year) Total Scope 3 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) Metric tonnes of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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