Municipal debt securities rules tighten issuance, listing, disclosure, rating, escrow and trustee obligations for issuers. The Regulations revise the framework governing municipal debt securities by setting issuer eligibility (authority under constituting document, prescribed accounting standards, no recent defaults, absence of restraint or wilful defaulter/fugitive economic offender status), requiring credit ratings, dematerialisation, appointment of registered debenture trustees, and application to recognised stock exchanges. They mandate detailed disclosures in draft offer documents and placement memoranda, due diligence and certification by lead managers and debenture trustees, escrow and trust deed arrangements restricting use of proceeds, and continuous disclosure, reporting and audit obligations, while empowering the Board with specified remedial and relaxation powers.