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Municipalities having surplus can issue bonds, says Sebi

The eligibility would also be decided by financial criteria specified by Sebi from time to time

Press Trust of India  |  Jaipur 

Sebi

having a surplus in their books in any of the three immediately preceding financial years will be eligible to issue bonds, with the deciding to amend norms in this regard.

The eligibility would also be decided by financial criteria specified by from time to time.

To boost the market for municipal bonds, also known as muni bonds, board on Saturday approved changes to the relevant regulations in order to provide a criterion that is alternative to 'net worth' of the municipalities.

The decision also comes against the backdrop of Prime Minister last month pitching for boosting the market.

After its board meeting here, said making public issue of securities should have "surplus as per its and Expenditure Statement, in any of the three immediately preceding financial years or any other financial criteria as specified by from time to time".

Under the (Issue and listing of Securities by Municipalities) Regulations, 2015 (ILDM), a municipality or a Corporate Municipal Entity (CME) making public issue of securities should not have negative net worth in any of three immediately preceding financial years.

Stating that he is "disappointed that even now we do not have a municipal bond market," Modi had urged and the finance ministry to ensure that at least 10 cities issue within one year.

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Municipalities having surplus can issue bonds, says Sebi

The eligibility would also be decided by financial criteria specified by Sebi from time to time

The eligibility would also be decided by financial criteria specified by Sebi from time to time
having a surplus in their books in any of the three immediately preceding financial years will be eligible to issue bonds, with the deciding to amend norms in this regard.

The eligibility would also be decided by financial criteria specified by from time to time.

To boost the market for municipal bonds, also known as muni bonds, board on Saturday approved changes to the relevant regulations in order to provide a criterion that is alternative to 'net worth' of the municipalities.

The decision also comes against the backdrop of Prime Minister last month pitching for boosting the market.

After its board meeting here, said making public issue of securities should have "surplus as per its and Expenditure Statement, in any of the three immediately preceding financial years or any other financial criteria as specified by from time to time".

Under the (Issue and listing of Securities by Municipalities) Regulations, 2015 (ILDM), a municipality or a Corporate Municipal Entity (CME) making public issue of securities should not have negative net worth in any of three immediately preceding financial years.

Stating that he is "disappointed that even now we do not have a municipal bond market," Modi had urged and the finance ministry to ensure that at least 10 cities issue within one year.
image
Business Standard
177 22

Municipalities having surplus can issue bonds, says Sebi

The eligibility would also be decided by financial criteria specified by Sebi from time to time

having a surplus in their books in any of the three immediately preceding financial years will be eligible to issue bonds, with the deciding to amend norms in this regard.

The eligibility would also be decided by financial criteria specified by from time to time.

To boost the market for municipal bonds, also known as muni bonds, board on Saturday approved changes to the relevant regulations in order to provide a criterion that is alternative to 'net worth' of the municipalities.

The decision also comes against the backdrop of Prime Minister last month pitching for boosting the market.

After its board meeting here, said making public issue of securities should have "surplus as per its and Expenditure Statement, in any of the three immediately preceding financial years or any other financial criteria as specified by from time to time".

Under the (Issue and listing of Securities by Municipalities) Regulations, 2015 (ILDM), a municipality or a Corporate Municipal Entity (CME) making public issue of securities should not have negative net worth in any of three immediately preceding financial years.

Stating that he is "disappointed that even now we do not have a municipal bond market," Modi had urged and the finance ministry to ensure that at least 10 cities issue within one year.

image
Business Standard
177 22