Markets regulator SEBI has launched an information database on municipal bonds. As part of efforts to develop the bond markets, an outreach programme on municipal bonds and municipal finance was organised by SEBI in the national capital. Representatives from various stakeholders, including the Ministry of Housing and Urban Affairs, municipal corporations, stock exchanges, credit rating agencies, merchant bankers and debenture trustees, participated in the programme.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
The information database contains a wide range of information in the form of statistics and regulations, circulars, guidance note and Frequently Asked Questions issued by Sebi in respect of municipal debt securities.
The repository contains various checklists for pre-listing requirements and sample letters and certificates from various intermediaries to be obtained by an issuer who plans to tap the municipal bond market.
A municipal bond (muni) is a debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools. Through muni bonds, a municipal corporation raises money from individuals or institutions and promises to pay a specified amount of interest and returns the principal amount on a specific maturity date. These are mostly exempt from federal taxes and from most state and local taxes, making them especially attractive to people in high income tax brackets.
Municipal Bonds can help the Urban Local Bodies (ULBs) to garner revenue to complete budgetary projects as property tax is the only major source of municipal revenue. Growth of the municipal bond market is critical for India’s large cities and towns to upgrade their creaking infrastructure. The ability of municipal bodies to be self-sustaining is also critical to the success of the Centre’s pet projects such as Smart Cities and Amrut.
Find More News on Economy Here
India is often called the Land of Festivals because it celebrates countless festivals throughout the…
Simone Tata, a transformative figure in India’s business landscape and the step-mother of Ratan Tata,…
IndiGo Airlines is one of India’s most popular and trusted airlines. It is known for…
Many countries have different names in different languages. One such country is Germany, which is…
Northeast India is a region full of beautiful landscapes, green forests and rich culture. A…
Jharkhand, a state in eastern India, has a well-developed railway network that connects it to…