Sebi tightens disclosure norms for muni bonds
Every credit rating of such issuer will be reviewed at least once a year, by a registered credit rating agency.
In a circular, the regulator said that such listed entities should shall prepare and submit half yearly unaudited financial results to the stock exchanges within 45 days of the end of the first half of the year, and will submit the annual audited financial results for the financial year, within sixty days from the end of the financial year along with the audited report.
The listed entities will also submit a certificate to the stock exchange intimating the status of payment of interest or principal or both within five working days of the same becoming due in respect of municipal debt securities.
Every credit rating of such issuer will be reviewed at least once a year, by a registered credit rating agency, the regulator said.
Sebi also said that in the event of credit rating being downgraded by two or more notches below the rating assigned at the time of issue, the listed entities shall disclose the reasons for the downgrade in rating and the steps, if any, it intends to take to recover the rating.
Any change in credit rating should be promptly disseminated on the stock exchanges where such securities are listed, Sebi added.