Sebi constitutes municipal bonds development committee

Markets regulator Sebi on Friday said it has constituted a committee which will suggest on policy matters pertaining to development of municipal debt securities and facilitate municipalities for issuance of such bonds.

The regulator has constituted a municipal bonds development committee headed by its Executive Director Sujit Prasad and comprises representatives from municipal corporations, lawyers, professionals and market practitioners.

The panel will advise Sebi on issues related to regulation and development of primary and secondary market of municipal debt securities, the Securities and Exchange Board of India (Sebi) said in a statement.

It will suggest the regulator on matters required to be taken up for changes in legal framework to introduce simplification and transparency in systems and procedures in the primary and secondary market.

Also, the panel would recommend on matters relating to regulation of intermediaries for ensuring investor protection in the primary and secondary market as well as on measures to facilitate issuers, municipalities, for issuance of municipal debt securities.

In September, Sebi had relaxed norms for 'muni bonds' issuance to help smart cities as well as entities working in areas of city planning and urban development work, including municipalities, raise funds through debt securities.

Nearly five years ago, the regulator had come out with the Issue and Listing of Debt Securities by Municipalities (ILDM) Regulations and since then seven municipalities have raised nearly Rs 1,400 crore by issuing their debt securities, which are commonly known as 'muni bonds'.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel