The Securities and Exchange Board of India (SEBI) on July 01, 2026, issued the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) (Amendment) Regulations, 2026, further to amend the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015.
They shall come into force on July 08, 2026.
The following has been amended, namely:
• The amendments introduce definitions for Retail Individual Investors (investing up to ₹2 lakh) and Working Day, permit the issuance of ESG debt securities in line with the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021, and enable Special Purpose Vehicles (SPVs) established under the Government of India's Pooled Finance Development Fund Scheme to raise municipal debt with prescribed disclosures.
• The regulations also allow issuers to publish issue advertisements electronically, subject to publishing a newspaper notice containing a QR code and web link, introduce incentives for specified investor categories such as senior citizens, women, defence personnel, and retail individual investors, and expand disclosure requirements relating to refinancing of existing debt, financial position, legal proceedings, project details, risk factors, and outstanding liabilities.
• A new Schedule I-B has been inserted prescribing comprehensive disclosure requirements for SPVs issuing municipal debt securities, enhancing transparency, investor protection, and governance in the municipal bond market.
[Notification no. - SEBI/LAD-NRO/GN/2026/305]
