NSE IFSC Unveils International Sustainability Platform in GIFT City

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by KnowESG
National Stock Exchange of India 3

NSE IFSC, a subsidiary of the National Stock Exchange (NSE) in India, has recently announced the rollout of an international sustainability platform at GIFT City in Gujarat state. It starts functioning in the second half of the year.

NSE IFSC said that this is, for the first time, an environmental, social and governance (ESG) platform got introduced in India.

The platform will help move sustainable finance to India and other markets and list and trade several sustainable products, including sustainable bonds, voluntary carbon, green bonds, green real estate investment trusts (REITs), green equity, etc.

GIFT City offers a perfect location for international investors to participate in the ESG transition in India and other markets.

NSE IFSC said, "It is expected to get operationalised in the second half of 2022 subject to regulatory approvals."

If the issuers want to list their products, they should satisfy a minimum set of ESG standards and comply with the specific criteria defined by the NSE IFSC.

Corporate bodies, startups, small and medium enterprises, non-profits, social impact organisations, governments and quasi-government organisations can use the platform to attract capital to fulfil their climate and ESG goals.

The platform uses Distributed Ledger Technology (DLT) or Blockchain to monitor the transactions and maintain integrity and speed.

Vikram Limaye, Managing Director and CEO at NSE, said: "We are committed to establishing the international sustainability platform at GIFT City. Such a trading platform can play a significant role in channelising capital that will be required in ESG and sustainability transitions across the globe."

According to him, the platform will encourage a wide range of groups, including corporations, governments, and social businesses, to introduce new ways to make money that is environmentally friendly. It also helps in dealing with global environmental issues like climate change.

According to Injeti Srinivas, Chairman of the IFSCA, the measure will foster good business practises and enable corporations, government agencies, and social enterprises to get long-term financing through such a platform.

The NSE IFSC is working with ECube Investment Advisors, a platform that focuses on ESG issues, and Chainflux, a Blockchain company.

Gujarat's GIFT City is India's first International Financial Services Centre (IFSC), and NSE IFSC is located there.