Soon, an IFSC sovereign green bond trading and investing scheme will be available

Governor Shaktikanta Das said on Friday that the Reserve Bank of India (RBI) has decided to announce a plan for trading and investing in sovereign green bonds in the IFSC.

The apex bank’s Monetary Policy Committee (MPC) meeting was where the decision was made.

He said, “A scheme for investment and trading in these bonds in the IFSC (International Financial Services Centre) will be notified very shortly with a view to facilitating wider non-resident participation in sovereign green bonds.”

This will make such bonds available for purchase to qualified international investors in the IFSC.

The governor further emphasized that, after consulting with the government and the IFSC Authority, a plan allowing qualified international investors to invest in and trade sovereign green bonds in the IFSC is being announced separately.

It should be mentioned that the Indian government would issue Sovereign Green Bonds in January 2023, according to a statement made in the Union Budget for FY 2022–2023.

Additionally, these bonds were issued in FY 2023–2024 as part of the government borrowing schedule.

Foreign portfolio investors (FPIs) who have registered with SEBI are currently allowed to invest in SGrBs via the various channels that FPIs have access to for investing in government securities.

According to the report, in the first half of the current fiscal year, the government intends to issue Sovereign Green Bonds in order to borrow Rs 12,000 crore.

The budget estimate states that the government intends to borrow Rs 14.13 trillion from the gross market in 2024–2025. Of this, the first half is expected to see the borrowing of Rs 7.5 trillion, or 53%.

GIFT IFSC is currently India’s first international financial services center.

The International Financial Services Centres Authority has permitted international stock brokerage companies to trade remotely on Gift IFSC marketplaces.

Under this system, even in the event that these enterprises lack a physical presence at Gift IFSC—that is, an office or employees—they will be permitted to trade directly, on a proprietary basis, on the stock markets without the need for a broker-dealer.

These organizations will be called Remote Trading Participants, or RTPs.

Currently, nations including the US, Israel, Singapore, Japan, and Japan permit brokers to be members virtually.