Sebi overhauls municipal bond framework to boost urban financing.

Sebi overhauls municipal bond framework to boost urban financing. The market regulator has proposed significant changes enabling municipalities to raise bonds for debt refinancing while implementing stricter disclosure requirements on lenders, repayment schedules, and interest costs. The framework now caps working capital usage at twenty-five percent of issue proceeds and prohibits general purpose spending. As of March thirty-first, twenty-two municipal corporations have already tapped capital markets, raising four thousand five hundred forty crore across thirty-one issuances. The new rules also introduce pooled financing options for multiple urban local bodies, streamlining access to capital markets. Enhanced transparency requirements mandate detailed information on any past debt restructuring, strengthening investor protection.