14-Jun-2023: Sovereign Gold Bond Scheme 2023-24
The Government of India, in consultation with the Reserve Bank of India, has decided to issue Sovereign Gold Bonds (SGBs) in tranches as per the calendar specified below:
|
S. No. |
Tranche |
Date of Subscription |
Date of Issuance |
|
1. |
2023-24 Series I |
June 19 - June 23, 2023 |
June 27, 2023 |
|
2. |
2023-24 Series II |
September 11-September 15, 2023 |
September 20, 2023 |
22-Dec-2022: Sovereign green bonds and thematic funds for blended finance for climate action announced in the Union Budget 2022-23
The Minister of State for Environment, Forest and Climate Change, Shri Ashwini Kumar Choubey, today said that India’s vision to achieve net zero emissions by 2070 has been carefully considered after taking into account the principles of United Nations Framework Convention on Climate Change (UNFCCC), in particular, the principle of common but differentiated responsibilities and respective capabilities in the light of national circumstances.
In a written reply to a question in the Rajya Sabha, Shri Choubey said that according to latest estimates in India’s Long Term Low-Carbon Development Strategy (LT-LEDS) document submitted to the UNFCCC in November, 2022, it is envisaged that a transition to a low-carbon development pathway will entail costs, pertaining to the deployment of new technologies, development of new infrastructure, and other transaction costs. Several estimates regarding India’s financial needs exist. Many of them focus on the energy sector, including industry, buildings, and transport. Estimates vary across studies due to differences in assumptions, coverage, and modelling approaches, but fall in "the range of trillions of dollars by 2050".
The Minister further informed that Government of India has already taken a number of measures including the announcements in the Union Budget 2022-23. Sovereign green bonds and thematic funds for blended finance in areas including climate action were announced in the Union Budget 2022-23. The Budget pushes energy transition by encouraging domestic production of solar power equipment and batteries, in line with India's climate commitments. Government of India has also approved the Production Linked Incentive Scheme (Tranche II) on ‘National programme on High Efficiency Solar PV Modules’, with an outlay of Rs. 19,500 crores for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV Modules.
The written reply stated that as per the Securities Exchange Board of India (SEBI), green debt securities are created to fund projects that have positive environmental and/or climate benefits. Proceeds from these bonds are earmarked for green projects. The SEBI (Issue and Listing of Non-Convertible Securities) Regulations, defines green debt security as a debt security issued for raising funds that are to be utilised for project(s) and/ or asset(s) falling under any of the following categories, subject to the conditions as may be specified by the Board from time to time:
- Renewable and sustainable energy including wind, solar, bioenergy, other sources of
- energy which use clean technology,
- Clean transportation including mass/public transportation,
- Sustainable water management including clean and/or drinking water, water
- recycling,
- Climate change adaptation,
- Energy efficiency including efficient and green buildings,
- Sustainable waste management including recycling, waste to energy, efficient
- disposal of wastage,
- Sustainable land use including sustainable forestry and agriculture, afforestation
- Biodiversity conservation, or
- a category as may be specified by the Board, from time to time.
Further, the final Sovereign Green Bonds Framework of India has now been approved. The Framework for Sovereign Green Bonds by the Government of India has been designed to comply with all the four components and key recommendations of the International Capital Market Association (ICMA) Green Bond Principles (2021). The four core components as outlined by ICMA green bond principles are:
- Use of proceeds
- Project evaluation and selection
- Management of proceeds; and
- Reporting
9-Nov-2022: Union Finance Minister Smt. Nirmala Sitharaman approves India’s First Sovereign Green Bonds Framework
Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman approves the final Sovereign Green Bonds framework of India. This approval will further strengthen India’s commitment towards its Nationally Determined Contribution (NDCs) targets, adopted under the Paris Agreement, and help in attracting global and domestic investments in eligible green projects. The proceeds generated from issuance of such bonds will be deployed in Public Sector projects which help in reducing carbon intensity of the economy.
The Framework comes close on the footsteps of India’s commitments under “Panchamrit” as elucidated by the Prime Minister, Shri Narendra Modi, at COP26 at Glasgow in November, 2021. The approval is fulfillment of the announcement in the Union Budget FY 2022-23 by the Union Finance Minister that Sovereign Green Bonds will be issued for mobilising resources for green projects.
Green bonds are financial instruments that generate proceeds for investment in environmentally sustainable and climate-suitable projects. By virtue of their indication towards environmental sustainability, green bonds command a relatively lower cost of capital vis-à-vis regular bonds and necessitates credibility and commitments associated with the process of raising bonds.
In the above context, India’s first Sovereign Green Bonds framework was formulated and as per the provisions of the framework, Green Finance Working Committee (GFWC) was constituted to validate key decisions on issuance of Sovereign Green Bonds.
Further, CICERO, an independent and globally renowned Norway-based Second Party Opinion (SPO) provider, was appointed to evaluate India’s green bonds framework and certify alignment of the framework with ICMA’s Green Bond Principles and international best practices. After due deliberation and consideration, CICERO has rated India’s Green Bonds Framework as ‘Medium Green’ with a “Good” governance score.
10-Oct-2022: Commerce Minister reviews the functioning of the GIFT Special Economic Zone
Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal reviewed the functioning of the GIFT Special Economic Zone and issues with respect to regulatory aspects of operation of SEZ and the office of the DC GIFT in Gujarat.
The Minister interacted with industry representatives at GIFT City.
“Held a fruitful interaction with industry representatives at GIFT City. Discussed benefits of setting up units here. Received excellent suggestions including those on exports promotion and 'Make in India' in manufacturing”, Shri Goyal tweeted on the meeting.
The Minister had interactions at the International Bullion Exchange (IIBX) in GIFT City to understand issues with respect to trading of Gold; operationalising the Gold Spot exchange and reducing the cost of gold metal loans for jewellery exporters through Gift IFSC.
“India International Bullion Exchange (IIBX), GIFT City is one of its kind globally. Urged representatives of Jewellery sector to discover competitive prices for gold through IIBX. Also explained how India-UAE CEPA is a huge window of opportunity for them”, he tweeted.
He also issued directions to improve the trading of Gold on the IIBX, including enabling the utilisation of the TRQ on gold obtained in UAE FTA be operated from IIBX.
Shri Goyal met representatives of International Financial Services Centres Authority (IFSCA) at GIFT City and resolved various administrative issues with the office of the DC GIFT SEZ and IFSCA.
IFSCA is to participate in periodic review of exports with EPC and exporters done by the Minister to check as to how the IFSC financial infrastructure can be leveraged to increase exports.
“IFSC will be a key driver of economic growth with enhanced Ease Of Doing Business for global investors who will gain from the India growth story”, the Minister tweeted on the meeting.
Shri Goyal interacted with various heads of units in GIFT city comprising Bankers, fund managers, derivative exchange management, aviation industry representatives among others and heard their issues with allied offices of C&I, DGFT and SEZ among others.
The Minister also gave directions to Department for Promotion of Industry and Internal Trade (DPIIT) to explore whether the Start up ecosystem can benefit from the facilities available at GIFT city.
Earlier in the day, the Minister had interacted with young innovators and startups at i-Hub.
“Spirit of innovation integral to Gujarat and its people. Delighted to interact with young innovators and startups at i-Hub. Shared with them how PM Narendra Modi ji's out-of-box thinking is paving the road for India's future growth”, he tweeted.
28-Oct-2020: GIFT IFSC prescribes framework for listing of Depository Receipts
The International Financial Services Centres Authority (IFSCA), with an objective to develop the financial products and financial services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has prescribed the regulatory framework for listing of Depository Receipts (DRs).
The framework provides for listing of DRs by companies that are listed in FATF compliant jurisdictions (including India). The framework enables the eligible listed companies to raise capital through issuance and listing of DRs on the stock exchanges in GIFT IFSC.
Additionally, the framework enables eligible companies having DRs listed on any exchange in a FATF compliant jurisdiction to list and trade such DRs on the stock exchange(s) in GIFT IFSC as an additional venue for trading, without any fresh public offering.
While IFSCA has prescribed the framework for essential disclosure requirements such as financial statements, material or price sensitive information, shareholding pattern, change of depository and corporate actions, the listed companies shall continue to comply with the applicable requirements of their respective home jurisdictions with respect to corporate governance norms and several other disclosure requirements, without additional regulatory burden. The listed companies will be required to release all the disclosures made in the home jurisdiction to the stock exchange(s) in GIFT IFSC.
Further details on the framework for listing of DRs on the stock exchanges in IFSC are available on the IFSCA website at the URL: https://www.ifsca.gov.in/Circular
21-Oct-2020: IFSCA prescribes regulatory framework for REITs and InvITs in IFSC
The International Financial Services Centres Authority (IFSCA), with an objective to develop the financial products and services in the Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) has prescribed the regulatory framework for Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in IFSC.
IFSCA has permitted global participants i.e. REITs and InvITs incorporated in FATF compliant jurisdictions to list on the stock exchanges in GIFT IFSC. Additionally, InvITs have been permitted to raise funds through private placements also.
The REITs and InvITs registered in IFSC have been permitted to invest in real estate assets and infrastructure projects respectively in IFSC, India and other foreign jurisdictions, which is in line with the framework provided in the global financial centres.
Additionally, the REITs and InvITs that are already listed in any of the permissible jurisdictions other than IFSC (currently USA, Japan, South Korea, United Kingdom excluding British Overseas Territories, France, Germany, Canada and India) or India have been permitted to list and trade on the recognised stock exchanges in IFSC, subject to compliance with their respective laws of home jurisdiction.
The listing of REITs and InvITs in IFSC shall be in accordance with the requirements of the stock exchanges in IFSC.
The entities in IFSC can participate and benefit from the growth of real estate and infrastructure sector in international jurisdictions.
31-Jan-2018: Unified regulator for GIFT City
The International Financial Service Centre (IFSC) at Gift City, Gujarat has received a major boost with the Finance Minister proposing a unified regulator for the special finance zone along with tax benefits for non-residents and non-corporate entities operating there. This assumes significance as various government agencies and regulators, including the Reserve Bank of India and Securities and Exchange Board of India (SEBI), have oversight on entities that operate in the zone.
The announcement of setting up of unified regulator for IFSC in India would help India achieve its full potential in the global financial markets. Globally, most of the financial centres host unified regulator in the same centre. This decision would help in establishing GIFT IFSC as a global financial hub.