RBI allows foreign investors in IFSC to invest in sovereign green bonds
The Reserve Bank on Thursday introduced a scheme to permit foreign investors in the International Financial Services Centre (IFSC) to invest in sovereign green bonds to facilitate wider non-resident participation in such instruments.
The government issued sovereign green bonds (SGrBs) in January 2023.
SGrBs were also issued as part of the government borrowing calendar in FY2023-24.
At present, foreign portfolio investors (FPIs) registered with Sebi are permitted to invest in SGrBs under the different routes available for investment by FPIs in government securities.
Earlier in April, the Reserve Bank announced the plan -- Scheme for Trading and Settlement of Sovereign Green Bonds in the International Financial Services Centre in India -- to facilitate wider non-resident participation in SGrBs.
On Thursday, the RBI issued a circular permitting eligible foreign investors in the International Financial Services Centre (IFSC) to invest in such bonds.
"The scheme shall apply to investm