Answer-If an issuer of Green Debt Securities (GDS) realizes that funds are being utilized for purposes that...

If funds are used for purposes outside the definition of GDS, the issuer shall disclose the same to the investors and, if required by a majority of debenture holders, undertake early redemption of such debt securities.

Question

If an issuer of Green Debt Securities (GD

S realizes that funds are being utilized for purposes that do not fall under the definition of GDS, what must they do?

A Quietly reallocate the funds in the next financial year without public disclosure.

B Disclose the same to investors and, if required by a majority of debenture holders, undertake early redemption.

C Convert the green debt security into an ordinary equity share automatically.

D Pay a fixed 2% penalty to the Ministry of Corporate Affairs and continue the project.

E Suspend all operations of the company until a fresh rating is assigned.

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If an issuer of Green Debt Securities (GD

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