NSE IFSC, a subsidiary of NSE, has launched its international subsidiary platform to facilitate listing and trading of various green bonds and other ESG investments
On Earth day, April 22, NSE IFSC, a subsidiary of the National Stock Exchange (NSE), announced the launch of an international sustainability platform at Gandhinagar, Gujarat's GIFT City, which is expected to get operationalised in the second half of 2022, subject to regulatory approvals.
Injeti Srinivas, Chairman, IFSCA, said, “I am happy to note that NSE IFSC is proposing to establish an exclusive International Sustainability Platform at GIFT IFSC. The proposal is very much in line with our goal to promote GIFT IFSC as a global hub for sustainable finance and also as a gateway to channelise much needed foreign capital into the country to meet our commitments towards SDGs (Sustainable Development Goals) as well as NDCs (Nationally determined contributions ) under the Paris Agreement.”
Srinivas added that the move would encourage responsible conduct of business and enable corporates, government bodies and social enterprises to raise sustainable finance from such a platform.
What Will This Platform Offer?
This platform will facilitate the listing and trading of various sustainable investment products like Green bonds, voluntary carbon bonds, sustainable bonds, green real estate investment trust units (REITs), green equity shares, and others. This platform aims to channel resources to finance various green projects in India and other markets.
“Located in the GIFT City, this new platform will facilitate international investors in participating in Environment, Social and Governance (ESG) transitions in India and other markets,” stated a Press release by NSE IFSC.
What Technology Will It Use?
NSE IFSC has specified that the platform will use Distributed Ledger Technology (DLT) such as blockchain to ensure integrity, speed, tracking and traceability of transactions. ECube Investment Advisors, an ESG-focused platform, and Chainflux, a blockchain products firm, are working closely with NSE IFSC in operationalisation.
Who Are Expected To Participate In It?
NSE IFSC said that the issuers who will list their products on this platform are expected to meet certain minimum ESG standard sets and also comply with any specific criteria as may be defined. NSE IFSC expects a range of corporate bodies, including large corporates, small and medium enterprises and start-ups, as well as non-profits and social impact organisations, and government and quasi-government organisations and others to utilise this opportunity to further their ESG and climate goals.