An event access on the nascent municipal bond market in india, under a seven-i framework

Abstract

The objective of this paper is to trace the events in India from July 2013 until May 2015, and conduct an updated study on the opportunities and challenges presented by the issuance and trading of Munis in India. Such a study is intended to provide a comprehensive perspective for consideration by various stakeholders and policy makers in India. This is an event study using news analytics under the Seven-I framework (Issuers, Investors, Intermediaries, Instrument, Innovation, Incentives, Information) to provide specific insights to take the development of a Muni bond market forward. The latest development in the field of Munis in India is the release of SEBI Regulations for the listing and trading and the relevant disclosure norms. In parallel, SEBI is in close contact with the Ministry of Finance, Government of India for creating a policy-framework for market-based funding of municipalities in India. Governance, Management and the Issuer’s perspectives have been identified as the most-highlighted aspects from the data. However, SEBI and the Ministry of Finance also need to take note of the enveloping factors arising from the other Six Is, so that an enabling environment is created for a vibrant Muni bond market in India..