In its guidelines, the RBI said IFSC Banking Units (IBUs) of foreign banks that do not have a branch or subsidiary with banking license in India would be eligible to invest in sovereign green bonds.
The issues would be aimed at international investors seeking green loans.
The RBI said funds and schemes, including those set up by entities incorporated in India, are also regulated by the International Financial Services Centres Authority (IFSCA). willpower be eligible to invest in the bonds.
Those persons residing outside India but eligible to invest in IFSC would also be eligible investors. RBI said investments in sovereign green bonds other than those designated as “specified securities” under the Fully Accessible Route (FAR) will be part of the investment limits prescribed for foreigners. Briefcase Investors (FPI). An IBU of a bank in India and an IBU of a foreign bank having an authorised branch or subsidiary will also be eligible to invest in these bonds. Union budget For FY23, the government issued Sovereign Green Bonds (SGrB) in January 2023 and these were also issued as part of the government’s borrowing schedule in FY2023-24.
Currently, SEBI-registered Foreign Portfolio Investors (FPIs) are permitted to invest in SGrB under the various avenues available for investment by FPIs in government securities.
In a monetary policy The RBI announced that in order to facilitate wider participation of non-residents in SGrBs, it has decided to allow eligible foreign investors in the IFSC to also invest in such bonds.
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