Sebi proposes changes to municipal bond framework
Published on: May 14, 2026, 6:06 a.m. | Source: The Economic Times
On Wednesday, the regulator has proposed allowing municipalities to explicitly raise bonds for refinancing existing debt, while mandating detailed disclosures on lenders, repayment schedules, interest costs and any past restructuring. It has also suggested capping the use of issue proceeds towards working capital requirements at 25% and said issue proceeds should not be used for general purposes.
