The Securities and Exchange Board of India (SEBI) has relaxed the timelines for municipalities with listed municipal debt securities under its regulations to submit financial results to stock exchanges.
Under the revised framework issued yesterday, listed municipalities will now have to submit half-yearly unaudited financial results within 60 days of the first half-year, compared with the earlier 45-day deadline. Annual audited financial results will have to be submitted within 90 days from the end of the financial year along with the audit report, against the earlier 60 days. The regulator said timelines have been relaxed considering the practical challenges faced by municipalities during data collection, interdepartmental coordination and meeting disclosure requirements. The changes form part of operational measures specified by Sebi through a circular amending the framework for issue of listing of municipal debt securities.
SEBI has also introduced a two-step escrow account mechanism for issuers that are pooled finance vehicles or special purpose vehicles set up under the Government’s Pooled Finance Development Fund Scheme. Besides, it has also specified face value requirements for privately placed municipal debt securities.
