Executive Summary:
This document contains the Securities and Exchange Board of India (SEBI) regulations amending the Issue and Listing of Debt Securities by Municipalities Regulations, 2015. These amendments, effective from the date of publication in the Official Gazette, address the financial criteria and debt repayment requirements for municipalities issuing debt securities. The regulations aim to refine the framework for issuing and listing debt securities by municipalities in India.
Key Points / Main Content:
Amendment Regulations:
The document introduces the Securities and Exchange Board of India Issue and Listing of Debt Securities by Municipalities Amendment Regulations, 2017.
Effective Date:
The regulations come into force on the date of their publication in the Official Gazette.
Amendments to 2015 Regulations:
Regulation 4 is amended regarding financial criteria.
The requirement for municipalities to have surplus income is modified. It now requires surplus income as per its Income and Expenditure Statement, in any of the immediately preceding three financial years or any other financial criteria as specified by the Board from time to time. Corporate municipal entities should not have negative net worth in any of the immediately preceding three financial years.
Regulation 4 is amended regarding debt repayment.
Municipalities should 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. For corporate municipal entities, the requirements at clauses b and d shall be complied with by the municipality being financed.
Impact Analysis:
Municipalities:
Impact: Municipalities seeking to issue debt securities are impacted by the revised financial criteria and debt repayment requirements. They must ensure compliance with the amended regulations to be eligible for issuing debt securities.
Action Required: Municipalities need to review their financial status and debt repayment history to ensure they meet the amended criteria.
Corporate Municipal Entities:
Impact: Corporate municipal entities issuing debt securities are subject to specific conditions regarding net worth and compliance by the municipality being financed.
Action Required: These entities must verify their net worth and ensure that the financed municipality adheres to clauses b and d of the regulations.
Securities and Exchange Board of India (SEBI):
Impact: SEBI is responsible for enforcing and overseeing compliance with the amended regulations.
Action Required: SEBI needs to implement and monitor the application of these amended regulations.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body in India for securities and commodity market.
Securities and Exchange Board of India Act, 1992: The act of parliament that established the Securities and Exchange Board of India and granted it regulatory powers.
Securities and Exchange Board of India Issue and Listing of Debt Securities by Municipalities Regulations, 2015: Regulations pertaining to the issuance and listing of debt securities by municipalities, as established by the Securities and Exchange Board of India.
Securities and Exchange Board of India Issue and Listing of Debt Securities by Municipalities Amendment Regulations, 2017: Amendments made in 2017 to the Securities and Exchange Board of India Issue and Listing of Debt Securities by Municipalities Regulations, 2015.
Mumbai, Maharashtra: City in India where Securities and Exchange Board of India Notification was released
U. K. Sinha: Chairman of the Securities and Exchange Board of India at the time of this notification.
Official Gazette: Official government publication where the regulations are published.
Delhi: Place where Controller of Publication is located
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 56] ubZ fnYyh] cq/okj] iQjojh 15] 2017@ek?k 26] 1938
No. 56] NEW DELHI, WEDNESDAY FEBRUARY 15, 2017/MAGHA 26, 1938
भारतीय (cid:7079)ितभिू त और िविनमय बोड (cid:6981)
अिधसचू ना
मु(cid:7013)बई, 14 फरवरी, 2017
भारतीय (cid:7079)ितभिू त और िविनमय बोड (cid:6981)
(नगरपािलका(cid:7312) (cid:7367)ारा ऋण (cid:7079)ितभिू तय(cid:7298) का िनगम(cid:6981) और इनक(cid:7409) सचू ीब(cid:7373)ता)
(संशोधन) िविनयम, 2017
स.ं सबे ी / एल.ए.डी. /एन. आर. ओ./जी. एन. / 2016-17/032.—भारतीय (cid:7079)ितभूित और िविनमय बोड,(cid:6981)
भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) अिधिनयम, 1992 (1992 का 15) क(cid:7409) धारा 30 (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का
(cid:7079)योग करते (cid:7263)ए एत(cid:7375)ारा भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) (नगरपािलका(cid:7312) (cid:7367)ारा ऋण (cid:7079)ितभूितय(cid:7298) का िनगम(cid:6981)
और इनक(cid:7409) सूचीब(cid:7373)ता) िविनयम, 2015 का और संशोधन करने के िलए िन(cid:7388)िलिखत िविनयम बनाता ह,ै अथा(cid:6981)त,् -
1.(cid:32) इन िविनयम(cid:7298) को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) (नगरपािलका(cid:7312) (cid:7367)ारा ऋण (cid:7079)ितभूितय(cid:7298) का िनग(cid:6981)म
और इनक(cid:7409) सूचीब(cid:7373)ता) (संशोधन) िविनयम, 2017 कहा जा सकेगा ।
2.(cid:32) वे राजप(cid:7074) म(cid:7286) उनके (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)गे ।
3.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) (नगरपािलका(cid:7312) (cid:7367)ारा ऋण (cid:7079)ितभूितय(cid:7298) का िनग(cid:6981)म और इनक(cid:7409)
सूचीब(cid:7373)ता) िविनयम, 2015 म(cid:7286), -
(I) िविनयम 4 म(cid:7286), खंड (ग) के िलए, िन(cid:7388)िलिखत (cid:7079)ित(cid:7021)थािपत हो जाएगा, अथात(cid:6981) -्
833 GI/2017 (1)(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
“(ग) नगरपािलका क(cid:7409), ठीक पहले के तीन िव(cid:7275)ीय वष(cid:7300) म(cid:7286) से (cid:7408)कसी वष(cid:6981) म(cid:7286), उसके आय-
(cid:7390)य संबंधी िववरण के अनुसार अिधशेष आय हो, या कोई अ(cid:7008)य िव(cid:7275)ीय मानदडं जो बोड (cid:6981)
(cid:7367)ारा समय-समय पर िनधा(cid:6981)(cid:7407)रत (cid:7408)कए जाए:ँ
परंतु यह (cid:7408)क ठीक पहल े के तीन िव(cid:7275)ीय वष(cid:7300) म(cid:7286) से (cid:7408)कसी वष (cid:6981) म(cid:7286) कारपोरेट
(cid:7013)युिनिसपल ए(cid:7407)ं टटी क(cid:7409) शु(cid:7373)-मािलयत (नेटवथ(cid:6981)) ऋणा(cid:7004)मक (नेगे(cid:7407)टव) न रही हो ।“"
(II) िविनयम 4 म(cid:7286), खंड (घ) के िलए, िन(cid:7388)िलिखत (cid:7079)ित(cid:7021)थािपत हो जाएगा, अथा(cid:6981)त्-
“(घ) िपछले तीन सौ प(cid:7289)सठ (cid:7408)दन(cid:7298) के दौरान, नगरपािलका न े ऋण (cid:7079)ितभूितय(cid:7298) (डटै
िस(cid:6989)यू(cid:7407)रटीज़) क(cid:7409) अथवा बक(cid:7289) (cid:7298) या िव(cid:7275)ीय सं(cid:7021)था(cid:7312) स े िलए गए उधार(cid:7298) क(cid:7409) चुकौती
((cid:7079)ितसंदाय / रीपेम(cid:7286)ट) करने म(cid:7286) चूक न क(cid:7409) हो:
परंतु यह (cid:7408)क जहा ँ िनग(cid:6981)मकता(cid:6981) (इ(cid:7019)युअर) कारपोरेट (cid:7013)युिनिसपल ए(cid:7407)ं टटी हो, वहा ँ
खंड (ख) एवं (घ) म(cid:7286) दी (cid:7263)ई अपे(cid:6979)ा(cid:7312) का पालन उस नगरपािलका (cid:7367)ारा (cid:7408)कया जाएगा
िजसका िव(cid:7275)पोषण (cid:7408)कया जा रहा हो।”
यू.के. िस(cid:7008)हा , अ(cid:7007)य(cid:6979)
[िव(cid:6980)ापन-III /4/असा./417/16 (69जैडबी)]
पाद (cid:7407)ट(cid:7009)पण :
भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) (नगरपािलका(cid:7312) (cid:7367)ारा ऋण (cid:7079)ितभूितय(cid:7298) का िनग(cid:6981)म और इनक(cid:7409)
सूचीब(cid:7373)ता) िविनयम, 2015, सं. सेबी/एल.ए.ड(cid:17).-एन.आर.ओ./जी.एन./2015-16/006, 15
जुलाई 2015 को भारत के राजप! म# $कािशत हुए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 14th February, 2017
SECURITIES AND EXCHANGE BOARD OF INDIA
(ISSUE AND LISTING OF DEBT SECURITIES BY MUNICIPALITIES) (AMENDMENT) REGULATIONS,
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.¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
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.”
U. K. SINHA, Chairman
[ADVT.-III/4/Exty./417/16(69ZB)]
Footnote:
1.(cid:32) 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.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.