Question
As per the recent (April 2024) change done to SGrBs, w hich of the following statements is NOT true about Foreign Institutional Investors (FIIs) investing in Sovereign Green Bonds (SGrBs)?
Read the following paragrph and answer question no 19 & 20. Sometime back in one of the Union Budget, the FM announced the government’s decision to issue SGrBs, a kind of government debt that specifically funds projects attempting to accelerate India's transition to a low-carbon economy. Funds raised through SGrBs are earmarked exclusively for green projects, ensuring transparency and accountability in fund utilization. SGrBs typically offer lower interest rates compared to Government-Securities (G-Secs), reflecting their alignment with sustainable development objectives. Issuance of SGrBs requires adherence to internationally recognised green standards and certification processes to ensure the credibility of funded projects.
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