The Securities and Exchange Board of India (SEBI) on May 04, 2023, issued a notification regarding the Additional requirements for the issuers of transition bonds.
The following has been stated namely: -
• ‘Transition bonds’ is one of the sub-categories of the revised ‘green debt security’ definition. Transition bonds comprise “funds raised for transitioning to a more sustainable form of operations, in line with India’s Intended Nationally Determined Contributions.”
• It has been decided to prescribe certain additional requirements for issuing and listing transition bonds.
• An issuer desirous of issuing transition bonds shall make the following additional disclosures:
1. Disclosure in the offer document for public issues/private placements of such transition bonds: – To differentiate transition bonds from other categories of green debt security, the Issuer of transition bonds shall use a denotation ‘GB-T’.
2. Disclosure in the Centralised Database for corporate bonds: – An issuer shall disclose the denotation in the Centralized Database for corporate bonds/debentures by filling in the denotation.
3. Disclosure to Stock Exchanges, in case of a revision in the transition plan: - An Issuer of transition bonds, during the year, shall disclose the revised transition plan along with an explanation for any such revision to the already disclosed plan; if applicable.
4. Disclosure in the Annual Report: - The Issuer, shall disclose the transition plan along with a brief on the progress of the implementation of the transition plan.
This has come into effect from May 04, 2023.
[Notification No. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2023/66]
