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Amendment in Reg. 4 of SEBI (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015

Securities and Exchange Board of India(SEBI) Gazette Notification dated the 15th of February, 2017

No. SEBI/LAD/NRO/GN/2016-17/032.─ In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Securities and Exchange Board of India hereby makes the following regulations to further amend the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015, namely,─

1. These regulations may be called the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) (Amendment) Regulations, 2017.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015,-
(I) In regulation 4, for clause (c), the following shall be substituted, namely-
"(c) municipality shall have surplus income as per its Income and Expenditure Statement, in any of the immediately preceding three financial years or any other financial criteria as may be specified by the Board from time to time.
Provided that a corporate municipal entity shall not have negative net worth in any of immediately preceding three financial years." 
(II) In regulation 4, for clause (d), the following shall be substituted, namely-
"(d) municipality shall not have defaulted in repayment of debt securities or loans obtained from banks or financial institutions, during the last three hundred and sixty five days: 
Provided that where the issuer is a corporate municipal entity, the requirements at clauses (b) and (d) shall be complied by the municipality which is being financed."


Footnote:

1. The Securities and Exchange Board of India (Issue and Listing of Debt Securities by Municipalities) Regulations, 2015 were published in the Gazette of India on July 15, 2015 vide No. SEBI/LAD-NRO/GN/2015-16/006.

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