Securities and Exchange Board of India (SEBI), has come up with revised Norms for appointment of an independent third-party reviewer/certifier for green debt security. In a draft circular for public comments, it noted that a consultation paper is issued to solicit comments/ views/ suggestions from the public on the proposal to align the requirements of appointment of an independent third-party reviewer/ certifier for green debt security with that specified for social bonds and sustainability bonds issued vide circular dated June 05, 2025.
SEBI proposed that the issuer shall appoint an independent third-party reviewer/ certifier, to ascertain that the issuance of green debt securities is in accordance with the definition specified under SEBI NCS Regulations including review/certification of the processes including project evaluation and selection criteria, project categories eligible for financing by green debt security, etc. This is in compliance with the following conditions: the reviewer shall be independent of the issuer, its directors, senior management and key managerial personnel, the reviewer shall be remunerated in a way that prevents any conflicts of interest; and the reviewer shall have expertise in assessing ESG debt securities.
The scope of the review(s) conducted by the independent third-party reviewer/ certifier shall be specified in the offer document. The independent third-party reviewer may take one or more of the forms recommended by International Capital Market Association. An ESG rating provider registered with SEBI shall also be eligible to be appointed by the Issuer to act as a third-party reviewer for the purpose of this circular.