Sebi’s municipal bond push may not bring retail rush, experts warn of credit risks (opens original article in a new tab)

Sebi's amendments to municipal debt regulations aim to deepen India's municipal bond market by lowering entry barriers, but experts caution that low investor awareness, liquidity issues, and credit risk assessment challenges will limit retail participation.

• Sebi lowered the minimum ticket size for municipal bonds to ₹10,000 from ₹1 lakh.
• Experts warn of low investor awareness, patchy liquidity, and difficulty assessing municipal credit risk.
• Municipal bond issuance totaled ₹756.44 crore in 2026, remaining a thin market.