The Reserve Bank of India’s (RBI) announcement of its “Scheme for Trading and Settlement of Sovereign Green Bonds (SGrBs) in the International Financial Services Center (IFSC)” represented a seminal step toward integrating India’s green debt into global markets. The article presents the event study framework, which utilizes an average-return model, market model, and a risk-adjusted return model to quantify abnormal returns (ARs) on two benchmark SGrBs (maturing in 2028 and 2033) over a 21-day window. Our empirical analysis reveals a largely neutral to mildly negative cumulative abnormal return (CAR), with only one window exhibiting a statistically significant dip. These muted price movements indicate that, despite its structural promise, the IFSC scheme did not immediately affect investor valuation of these bonds. From the RBI’s perspective, this subdued market reaction underscores the importance of complementary measures, such as enhanced liquidity provision, greater transparency, and proactive investor outreach to translate policy intent into tangible pricing efficiency. Findings contribute to the green finance literature by illustrating how major regulatory reforms are absorbed in emerging bond markets and by delineating the critical role of market conditions and investor confidence in shaping short-term outcomes.
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