With reference to green bonds in India, consider the following statements: 1. Green bond is a debt instrument issued for renewable as well as non-renewable energy projects. 2. Both public and private sector banks can issue such bonds. 3. It is a low-risk bond as repayment is tied to the issuer rather than success of the project.

The correct answer is: D. None

Green bonds are a type of debt instrument that is used to raise money for environmentally friendly projects. They are typically issued by governments, corporations, or financial institutions. Green bonds are considered to be a low-risk investment because they are backed by the issuer’s creditworthiness.

In India, green bonds are regulated by the Securities and Exchange Board of India (SEBI). SEBI has issued guidelines for the issuance of green bonds, which require issuers to disclose information about the use of proceeds and the environmental impact of the projects.

The following are the statements about green bonds in India:

1. Green bond is a debt instrument issued for renewable as well as non-renewable energy projects.

This statement is incorrect. Green bonds are issued for environmentally friendly projects, such as renewable energy, energy efficiency, and sustainable water management. They are not issued for non-renewable energy projects.

1. Both public and private sector banks can issue such bonds.

This statement is correct. Both public and private sector banks can issue green bonds in India.

1. It is a low-risk bond as repayment is tied to the issuer rather than success of the project.

This statement is incorrect. Green bonds are considered to be a low-risk investment because they are backed by the issuer’s creditworthiness. However, the repayment of green bonds is not tied to the success of the project. If the project fails, the issuer is still obligated to repay the bond.