Weak steadiness sheets of municipal our bodies a problem in bond issuance: SEBI Chairperson

The weak steadiness sheets of the municipal our bodies are a problem within the improvement of municipal bond market in India, stated Securities and Exchange Board of India (SEBI) Chairperson Tuhin Kanta Pandey at an occasion in Mumbai on September 18, 2025.

“Municipal bonds have been a cornerstone of city-level improvement, enabling city native our bodies to lift long-term funds for important initiatives resembling water provide, sanitation, transport, and waste administration… problem lies in venture readiness and credibility. Many municipal our bodies battle with weak steadiness sheets or delayed clearances,” stated Mr. Pandey talking on the Annual Infrastrucutre Conclave of National Bank for Financing Infrastructure and Development (NaBFID).

“While the municipal bond market in India remains to be at a nascent stage, its potential is immense,” he added.

He known as for measures to develop the capital market and make it enticing for institutional and retail buyers to spend money on municipal and inexperienced bonds.

Speaking on the conclave, he additionally emphasised the necessity to increase the asset monetisation plan. “There is a must speed up asset monetisation in numerous sectors resembling roads, railways, ports, airports, power, petroleum & fuel and logistics. State Governments, barring a couple of, are but to crystalise asset monetisation plans to offer additional increase to infrastructure creation,” Mr. Pandey stated.

He additional highlighted the event of the Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as a brand new asset class. It is the “most promising avenues for channelising long run capital into infrastructure and actual property”, he stated.

SEBI had lately introduced that ReITs at the moment are categorised as equities, which might make them eligible to be listed on indices and guarantee better participation.