The Securities and Exchange Board of India (SEBI) on August 11, 2026, issued the Amendment to SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015.
The following has been amended, namely:
• The amendment provides operational changes for municipal debt securities. For privately placed municipal debt securities, the face value of each security may be ₹1 lakh or ₹10,000, as deemed appropriate. Securities issued with a ₹10,000 face value shall have a fixed maturity and no structured obligations, and the trading lot on the stock exchange shall always be equal to the face value. These face-value requirements apply only to private placements and not public issues.
• For cases where the issuer is a pooled finance vehicle/SPV established under the Government of India's Pooled Finance Development Fund Scheme, a two-step escrow mechanism is prescribed. Constituent municipalities shall maintain the required accounts, while the SPV/pooled finance vehicle shall maintain separate Interest Payment Account and Sinking Fund Account, receiving funds from the corresponding municipal accounts. The SPV shall maintain an amount equivalent to one year's interest obligation in its Interest Payment Account throughout the tenure of the municipal debt securities.
• SEBI has also relaxed the timelines for submission of financial results by listed municipalities to address practical difficulties in data collection and inter-departmental coordination. The deadline for submitting half-yearly unaudited financial results has been extended from 45 days to 60 days from the end of the first half-year, while annual audited financial results shall now be submitted within 90 days instead of 60 days from the end of the financial year, along with the audit report.
[Notification No. - HO/17/11/24(1)2026-DDHS-POD1/I/18526/2026]
