Amendment to SEBI (Issue and Listing of Municipal Debt Securities) Regulations, 2015 (“ILMDS Regulations”)

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....n respect of changes required in the regulatory framework for municipal debt securities. Based on the recommendations of the WG and public comments received on the same, certain amendments to the ILMDS Regulations were notified vide Gazette Notification SEBI/LAD-NRO/GN/2026/305 dated July 08, 2026 ["SEBI (Issue and Listing of Municipal Debt Securities) (Amendment) Regulations, 2026"]. Further, changes to the extant framework for municipal debt securities in respect of certain operational aspects are being specified through this circular. 2. Face value of municipal debt securities: 2.1. Regulation 22 of the ILMDS Regulations provides that "The face value of municipal debt securities shall be disclosed in offer document or placement mem....

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.....5. In case the listed entity is a pooled finance vehicle/ Special Purpose Vehicle (SPV) set up under the Pooled Finance Development Fund Scheme of the Government of India, the constituent municipalities are required to create all the above accounts and comply with the requirements specified for the same. Further, the SPV/ pooled finance vehicle shall maintain an "Interest payment account" and a "Sinking fund account", to which funds from the respective "Interest payment account" and "Sinking fund account" maintained by the constituent municipalities shall be transferred, as per the agreement between the SPV and the constituent municipalities. The SPV/ pooled finance vehicle shall throughout the tenure of the municipal debt securit....