NSE launches website for municipal bonds to increase accessibility

This initiative aims to enhance transparency, accessibility, and investor awareness in the municipal bonds market in India, NSE said in a statement

The National Stock Exchange (NSE) on Friday announced the launch of a dedicated website for municipal bonds in a bid to enhance the credibility and visibility of such bond markets in the country.

The website will serve as a centralised hub for market participants, offering comprehensive data on the Indian municipal bonds market, including issuances, credit ratings, trading volumes, intrinsic yields, and prices along with the historical performance of India's first municipal bond index -- the Nifty India Municipal Bond Index.

This initiative aims to enhance transparency, accessibility, and investor awareness in the municipal bonds market in India. By providing structured information and relevant updates, the initiative is set to strengthen confidence in municipal bonds as a viable investment avenue, NSE said in a statement.

 

"The launch of a dedicated municipal bond website is a great initiative that will significantly enhance the credibility and visibility of the municipal bonds market in India. This website will help bridge the information gap and attract investors to participate in financing urban development projects. As municipalities strive to raise funds for infrastructure growth, such measures are crucial in ensuring a robust municipal bonds market," Ashwani Bhatia, Sebi Whole-Time Member, said.

Ashishkumar Chauhan, MD and CEO of NSE, said this initiative will encourage greater participation from institutional and retail investors, ultimately aiding the development of urban infrastructure.

Municipal bonds or muni bonds are referred to as debt securities issued by local governments and agencies to fund day-to-day obligations and to fund finance capital projects like highways, roads and schools.

Separately, the bourse said the ISIN of NSE will be activated or unfreezed with effect from Monday, March 24, in view of Sebi's guidelines issued in October 2024.

Accordingly, from Monday, the shares of NSE can be transferred through the DIS (Delivery Instruction Slip) mechanism without following the existing stage 1 /stage 2 process. This will make the share transfer process faster for shareholders and others.