- No issuer shall be eligible to issue municipal debt securities under these regulations, unless the following criteria are complied with:(a)the issuer, proposing to issue municipal debt securities is eligible to raise funds under its constitution document;(b)the accounts of issuer shall be prepared in accordance with any of the following:v. National Municipal Accounts Manual or;vi. Municipal Accounts Manual as adopted by the respective State Governments; orvii. Accounting standards, applicable to issuers, as prescribed under the Companies Act or;viii. Accounting standards/policies, applicable to issuers, as specified in their constitution document.(c)the issuer has not defaulted in repayment of debt securities or loans obtained from banks or financial institutions, during the preceding three hundred and sixty five days;(d)no order or direction of restraint, prohibition or debarment by the Board is in force against the issuer or its promoters or its directors from accessing the securities market;(e)an issuer or its promoter, group company or director(s) thereof, should not have been named in the list of the wilful defaulters;(f)any of its promoter or director(s) has not been declared as a fugitive economic offender(s):Provided that where the issuer is a body corporate to which the Companies Act, 2013 applies or is a Special Purpose Vehicle, which is set up for the purpose of raising funds for an person for performing one or more functions entrusted under Article 243W of the Constitution of India, the requirements at clauses (b) and (c) above shall be complied by the person being financed;]
