The Securities and Exchange Board of India (SEBI)
on July 13, 2015 brought out regulations on the issue and listing of debt
securities by municipalities.
According to the regulations, a municipality
looking to issue debt should not have a negative net worth in the three
immediately preceding financial years & the issuer should not have
defaulted in repayment of debt securities or loans obtained from banks or
financial institutions, during the last three hundred and 65 days.
The regulation also states that the corporate
municipal entity, its promoter, group company or / directors should not have been named in the
list of the wilful defaulters published by the Reserve Bank of India or should
not have defaulted on payment of interest or repayment of principal amount in
respect of debt instruments issued by it to the public.
In case of public issue of debt, the regulation
says the revenue bonds intended to be issued shall have a minimum investment
rating and it should have a minimum tenure of 3 years or / such period as
specified by the board from time to time. The maximum tenure should not exceed
thirty years, it said.
“The issuer may decide the amount of minimum
subscription which it seeks to raise by issue of debt securities and disclose
the same in the offer document provided such minimum subscription limit shall
not be less than seventy five per cent of the issue size,” SEBI said.
It added that in the event of non-receipt of
minimum subscription all application money received in the public issue shall
be refunded forthwith to the applicants, within 12 days from the date of the
closure of the issue.
In regard to listing of the debt securities on
private placement basis, the regulation states that the minimum subscription
amount per investor should not be less than Rs. 25 lakh or such amount as may
be specified by board from time to time.
SEBI says…
* * A municipality looking to issue debt should
not have a negative net worth in past three preceding financial years
* * Bonds intended to be issued shall have a
minimum investment rating and should have a minimum tenure of 3 years
* * In the event of non-receipt of minimum
subscription all application money shall be refunded within 12 days
Nice information is published here about Godrej Garden City SG Highway Ahmedabad.
ReplyDelete