
Securities and Exchange Board of India (SEBI) is intensifying its efforts to boost investments in infrastructure, particularly through municipal bonds. On August 9, 2024, SEBI's executive director, Pramod Rao, emphasized the need for pension funds and insurance companies to channel their investments into these bonds, highlighting their potential for growth and the critical role they play in urban infrastructure development.
1. Focus on Municipal Bonds : SEBI is advocating for increased investment in municipal bonds as a way to enhance funding for urban infrastructure projects. This aligns with the regulator's broader goal of capital formation in the infrastructure sector for the fiscal year 2024-25.
2. Customized Regulations : Recognizing the diverse needs of the infrastructure sector, SEBI is considering tailored regulations for different segments, such as real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). An advisory committee has been established to better understand market requirements and stakeholder needs.
3. Long-term Vision : SEBI envisions a significant expansion of the municipal bond market, suggesting that with supportive policies, the market could grow substantially, benefiting urban local bodies and enhancing infrastructure financing capabilities.
These measures reflect SEBI's commitment to fostering a robust investment environment that supports infrastructure development across India.