Sebi has 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. The decision comes after the board of Securities and Exchange Board of India (Sebi) approved norms in this regard in August.
Sebi had issued its Issue and Listing of Debt Securities by Municipalites (ILDM) Regulations nearly five years ago and since then seven municipalities have raised nearly Rs 1,400 crore by issuing their debt securities, which are commonly known as ‘Muni Bonds’.
Officials said that the regulator is now proposing to allow this route for a larger number of entities including special purpose vehicles set up under the central government's ambitious ‘Smart Cities Mission’.
The proposed norms would be presented for Sebi’s board approval at a meeting scheduled later this month, the officials added.