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      Question

      To label a bond specifically as a "Social Bond" under

      SEBI's framework, which of the following is a mandatory operational requirement for issuers?
      A The issuer must distribute 50% of the profits directly to local community members. Correct Answer Incorrect Answer
      B The issuer must demonstrate clear governance around project selection, population targeting, and performance tracking. Correct Answer Incorrect Answer
      C The bond must have a mandatory maturity period of exactly 15 years. Correct Answer Incorrect Answer
      D The issuer must be a non-profit company registered under Section 8 of the Companies Act. Correct Answer Incorrect Answer
      E The bond must offer a higher interest rate than standard commercial bank fixed deposits. Correct Answer Incorrect Answer

      Solution

      To label a bond as โ€œsocial,โ€ issuers must not only allocate funds to eligible categories but also demonstrate clear governance around project selection, population targeting, and performance tracking.

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