SEBI puts out disclosure norms for municipal bonds

Putting in place disclosure norms for municipal bonds, the Securities and Exchange Board of India (SEBI) has asked municipalities to disclose all price-sensitive information and financial results to the stock exchanges. Municipalities proposing to issue debt securities on a private placement basis will have to make certain disclosures to the stock exchanges. This includes financial as well as non-financial information. The issuer will have to inform the exchanges of its intention to raise funds through debt securities and will have to enter into a simplified listing agreement with the exchanges where it proposes to list the securities. Every credit rating will need to be reviewed at least once a year by the registered credit rating agency.