Taking fresh steps to deepen debt markets, the Reserve Bank of India (RBI) Friday said that foreign investors in the International Financial Services Centre would be permitted to invest in sovereign green bonds.
“A scheme for investment and trading in SGrBs (sovereign green bonds) by eligible foreign investors in IFSC is being notified separately in consultation with the Government and the IFSC Authority,” the RBI said in its statement on development and regulatory policies, released along with the central bank’s policy statement on Friday.
At present, foreign portfolio investors (FPIs) registered with the Securities and Exchange Board of India (Sebi) are allowed to invest in sovereign green bonds under the various routes available for FPI investment in government bonds.
Last month, the RBI announced the sale of sovereign green bonds worth a total of Rs 12,000 crore through two tranches in April-September. The government had started issuing sovereign green bonds in FY23. Proceeds of such bonds are used for environmentally sustainable projects.
In November, the RBI said that sovereign green bonds would be counted as specified securities eligible under the Fully Accessible Route (FAR) for overseas investors.
The RBI also said that a mobile application was being developed to improve ease of access for the central bank’s Retail Direct Scheme for investment in government securities.
“The Scheme enables investors to buy securities in primary auctions as well as buy/sell securities through the NDS-OM (negotiated dealing system – order matching) platform. To further improve ease of access, a mobile application of the Retail Direct portal is being developed,” the RBI said.
The scheme, which was launched in November 2021 provides access to retail investors to maintain gilt accounts with RBI and invest in government securities.
