Section 5 in Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015
5. [ Eligibility Conditions for public issue. [Substituted by Notification No. SEBI/LAD-NRO/GN/2019/40, dated 27.9.2019 (w.e.f. 15.7.2015).]
- No issuer shall make a public issue of municipal debt securities unless the following conditions are complied with:(a)the issuer has surplus income as per its Income and Expenditure Statement in any of the immediately preceding three financial years or as per any other financial criteria as may be specified by the Board from time to time:Provided that where the issuer is a body corporate to which the Companies Act, 2013 applies, it shall not have negative net worth in any of immediately preceding three financial years;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 clause (a) shall be complied by the person being financed;(b)Any other conditions as may be specified by the Board from time to time.]
