Section 21 in Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015
21. [ Redemption and roll-over. [Substituted by Notification No. SEBI/LAD-NRO/GN/2019/40, dated 27.9.2019 (w.e.f. 15.7.2015).]
(1)The issuer shall redeem the municipal debt securities in terms of the offer document or placement memorandum.(2)Where the issuer desires to roll-over the municipal debt securities issued, it shall do so only upon passing of a special resolution to that effect and give twenty one days' notice of the proposed roll over to the holders of municipal debt securities:Provided that, if the holders of municipal debt securities do not provide consent for the proposed roll over within the notice period, the issuer shall redeem the municipal debt securities of such holders.(3)The notice referred to in sub- regulation (2) shall contain disclosures with regard to credit rating and the rationale for roll-over.(4)The issuer shall, prior to sending the notice to holders of municipal debt securities, file a copy of the notice and proposed resolution with the stock exchanges where such securities are listed, for dissemination of the same to the public on their websites.(5)The municipal debt securities issued can be rolled over subject to the following conditions:(a)the roll-over is approved by a special resolution passed by the holders of such municipal debt securities having the consent of not less than 75% of the holders by value of such municipal debt securities:(b)at least one rating is obtained from a credit rating agency within a period of six months prior to the due date of redemption and is disclosed in the notice referred to in sub-regulation (2);(c)fresh trust deed shall be executed at the time of such roll over or the existing trust deed may be continued if the trust deed provides for such continuation;(6)The issuer shall redeem the municipal debt securities of all the holders, who have not given their positive consent to the roll-over.]
