Municipal Bonds

Date: March 23, 2015

SEBI Municipal Bonds stock exchanges

 Securities and Exchange Board of India (SEBI) approved new bonds called Muni Bond

: The SEBI on 22 March approved a new set of norms for listing and trading of municipal bonds on stock exchanges. Municipal bonds, also to be known as “Muni Bonds”, would allow authorities to raise funds including for setting up of smart cities, by raising funds from the public and from the institutional investors. The municipal authorities, desiring of issuing these bonds, would need to have a strong financial track record and such bonds would be listed on the stock exchanges.  

To deepen markets and help raise funds for business and infrastructure projects, Sebi today announced a slew of measures including for listing of municipal bonds and for setting up of a global financial hub within India on the lines of Singapore and Dubai.

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These bonds products are very popular among investors in many developed nations, especially the United States, where they have attracted investments totalling over $500 billion and are among preferred avenues for household savings.

Besides, Sebi also announced a roadmap for the new fiscal, beginning next month, with regard to new norms to help young entrepreneurs raise funds through listing of start-ups and crowd-sourcing, while it would streamline and strengthen its enforcement process for better efficiency.