Issuers of municipal bonds need to disclose borrowings in offer documents

Issuers of municipal debt securities will have to disclose all borrowings and revenue grant details of the past three years in the offer document, markets regulator Securities and Exchange Board of India (Sebi) said in a guidance note.

The directions came after Sebi received certain queries from market participants seeking guidance on interpretation of some of the provisions of amended Municipal Regulations.

Sebi said issuers will have to disclose details of all borrowings along with outstanding amount of borrowings during the three years for which