The Securities and Exchange Board of India (SEBI) has revised norms governing the appointment of independent third-party reviewers or certifiers for green debt securities, aligning them with the broader framework for ESG debt instruments.
In a circular, SEBI said the guidelines have been modified to bring consistency with the requirements applicable to social bonds and sustainability bonds. It mandates issuers to appoint an independent third-party reviewer to confirm that green debt issuances comply with the definition under SEBI’s Non-Convertible Securities Regulations, 2021.
The reviewer must be independent of the issuer’s management, remunerated in a conflict-free manner, and possess expertise in assessing ESG debt securities. The scope of review must be disclosed in the offer document.
Permissible forms of external review include second party opinions, verification (including for refinancing), certification and scoring or rating, in line with International Capital Market Association guidelines. The new provisions take effect immediately.