Mumbai: Soon after the Reserve Bank of India (RBI) Governor Shaktikanta Das mentioned that trading of sovereign green bonds would commence at the International Financial Services Centre during the second half of the current fiscal, the RBI has notified amendments to Forex Management (Debt Instruments) Regulations, 2024. As result, people residing outside India can now trade in Sovereign Green Bonds in the International Financial Services Centre (IFSC), Gujarat.
“Persons resident outside India that maintain a securities account with a depository in IFSC in India may purchase or sell Sovereign Green Bonds issued by the government of India, as per terms and conditions specified by the Reserve Bank,” the RBI gazette notification published on Saturday.
On Saturday, Das had told the media, "We are in discussions with the IFSC on allowing investment in green bonds, it should be operationalised by the second half of FY25.
RBI Governor Shaktikanta Das had said in April after the MPC meeting that FPIs will be allowed to invest and trade in Sovereign Green Bonds in IFSC.
The government has been raising funds through green bonds since 2022-23 and has raised a total of Rs 36,000 crore in the last two years.
