MUMBAI - Issuers of green debt securities will have to appoint a third-party reviewer or certifier for the post-issue management of proceeds starting April, India's markets regulator said on Monday.

The third-party reviewer will also verify internal tracking and impact-reporting of these debt securities, the Securities Exchange Board of India (SEBI) said in a notification.

Finance Minister Nirmala Sitharaman announced plans to issue sovereign green bonds - so called because proceeds would go towards funding various sustainable projects - in the 2022-23 budget as India attempts to tap its domestic debt market to finance green infrastructure projects.

Appointing a third-party reviewer is applicable on a 'comply or explain' basis for a period of two years, the markets regulator said on Monday.

SEBI had said earlier third-party reviewers would be deployed for checking the issuance process for green debt securities, including project evaluation and selection criteria of projects eligible for green financing.

It also added to and updated some disclosure requirements for green debt issuances from its August 2021 circular.

The regulator asked companies to disclose information on a project-by-project basis regarding the environmental impact of projects financed by green debt.

Issuers will also need to disclose the reporting standards followed for green debt issues.

(Reporting by Bhakti Tambe; Editing by Nivedita Bhattacharjee)