SEBI plans municipal bond reforms to boost transparency, retail participation
Business
SEBI is looking to shake up the rules for municipal bonds, making it easier for cities to raise money for things like roads, transport, and water projects.
The new plan aims to boost transparency and get more regular people involved in investing, not just big institutions.
SEBI seeks ₹10,000 retail minimum
Municipalities could soon team up to issue bonds together through a special purpose vehicle (SPV), with extra safeguards like escrow accounts and state government support so investors feel secure.
SEBI also wants to lower the minimum investment, possibly as low as ₹10,000, with perks like discounts or higher interest rates to attract retail investors.
Public feedback on these reforms is open until June 3.