Economy India

SEBI introduces Information database on Municipal Bonds


As part of SEBI’s initiative to develop Bond markets, an outreach programme on Municipal Bonds and Municipal Finance was organized at New Delhi to provide a common platform for stakeholders to discuss the concerns of the issuers of Municipal Debt Securities, the requirements of investors, the extant regulatory framework and to recommend measures to increase awareness of and improve traction in the market for Municipal Debt Securities. Participants at the workshop had detailed discussions among various stakeholders on their concerns, suggestions and recommendations. The two-day event also brought focus to the use of existing revenue-generating assets managed by Municipal Corporations and the financing of green projects undertaken by Municipal Corporations.

SEBI, in 2015, introduced a regulatory framework for the issue, listing and trading of Municipal Debt Securities; the same was further reviewed by SEBI in 2019.

Municipal bonds are a good alternative source of finance to fund projects undertaken by Municipal Corporations. In India, the Municipal Debt market is in a nascent stage.

SEBI is taking steps to increase awareness through such events. Since 2017, twelve issues of Municipal Bonds have been made by ten Municipal Corporations in the country, raising almost Rs.2000 Cr. The funds raised have been used for various developmental projects like liquid waste management projects, water supply projects, tertiary sewage treatment plants, residential projects etc.

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