Regulation 15 - Minimum subscription - Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015

1 [Minimum subscription. 15. The minimum subscription amount per investor shall be Rupees ten lakh. ] ************* NOTES:- 1. Substituted vide NOTIFICATION No. SEBI/LAD-NRO/GN/2019/40 dated 27-09-2019 before it was read as, Conditions for listing of debt securities issued on private placement basis. 15. (1) An issuer may list its debt securities issued on private placement basis on a recognised stock exchange subject to the following conditions: (a) an issuer may issue general obligation bonds or revenue bonds; (b) accounts of municipality being the issuer, shall be prepared in accordance with National Municipal Accounts Manual or in accordance with similar Municipal Accounts Manual adopted by the respective State Government for at least three immediately preceding financial years; (c) no order or direction of restraint, prohibition or debarment by Board against the corporate municipal entity or its directors is in force; (d) the issuer, being a corporate municipal entity, has issued such debt securities in compliance with the provisions of Companies Act, 2013 and particularly section 42 of the Companies Act, 2013 and rules prescribed there under and other applicable laws; (e) the issuer shall not solicit or collect funds by issue of debt securities, except by way of private placement; (f) the minimum subscription amount per investor shall not be less than rupees twenty five lakh or such amount as may be specified by Board from time to time; (g) credit rating has been obtained in respect of such debt securities from at least one credit rating agency registered with the Board; (h) the debt securities proposed to be listed are in dematerialized form; (i) the disclosures as provided in Schedule of these regulations have been made.