SEBI proposes refinancing and minimum face values for municipal bonds
SEBI is proposing fresh reforms to give India's municipal bond market a much-needed boost.
Despite being a global go-to for funding public projects, municipal bonds haven't really caught on here: only ₹4,500 crore raised from over 20 cities in nine years.
The new proposals aim to fix this by allowing refinancing and setting clear minimum face values for these bonds.
SEBI suggests ₹10,000 and ₹100,000 lots
SEBI suggests making bonds available in chunks of ₹10,000 or ₹100,000, so buying and trading gets simpler.
Issuers might soon offer better interest rates or discounts to retail investors, women, and senior citizens, making it more attractive for everyday folks.
These moves echo incentives announced earlier by Finance Minister Nirmala Sitharaman and are meant to spark real growth in the market.