Uttar Pradesh Chief Minister Yogi Adityanath rings the bell at the Bombay Stock Exchange ( BSE) on December 2, 2020 before listing the Lucknow Municipal Corporation bonds.
Ninth Municipal Body
- Lucknow now becomes the ninth city in the country to have raised funds through issuing Municipal Corporation bonds.
- The eight other cities are; Amaravati, Visakhapatnam, Ahmedabad, Surat, Bhopal, Indore, Pune and Hyderabad.
- Ahmedabad Municipal Corporation issued the first municipal bond in 1998.
About Lucknow Municipal Corporation bond
- The tenure of the Lucknow Municipal Corporation bond is 10 years .
- The Lucknow Municipal Corporation had raised 200 crore rupees in the bond issued in November 2020.
About Municipal Corporation bonds
- Municipal Corporation Bonds are bonds issued by urban local bodies to raise money for financing specific projects such as infrastructure projects.
- Under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, cities have been encouraged to mobilize resources by issuing municipal bonds.
- According to the Securities and Exchange Board of India (SEBI) regulations (2015), to issue such bonds, municipalities must:
- Not have negative net worth in any of the three preceding financial years, and
- Not have defaulted in any loan repayments in the last one year.
(Source: AIR and Moneycontrol)
