The Securities and Exchange Board of India (SEBI) vide its notification has made amendments to the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015.
In the SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, the criteria to be complied with for municipalities to be eligible for issuing debt securities to public will include the following clauses as clause (c) and (d) in Regulation 4:
(I) For clause (c),
"(c) municipality shall have surplus income as per its Income and Expenditure Statement, in any of the immediately preceding three financial years or any other financial criteria as may be specified by the Board from time to time.
Provided that a corporate municipal entity shall not have negative net worth in any of immediately preceding three financial years."
(II) For clause (d),
"(d) municipality shall not have defaulted in repayment of debt securities or loans obtained from banks or financial institutions, during the last three hundred and sixty five days: Provided that where the issuer is a corporate municipal entity, the requirements at clauses (b) and (d) shall be complied by the municipality which is being financed."
They shall come into force on the date of their publication in the Official Gazette.
[Notification No. SEBI/LAD/NRO/GN/2016-17/032]