General conditions :
An issuer making public issue of debt securities shall only issue revenue bonds.
No issuer shall make a public issue of revenue bonds unless following conditions are complied with:
(a) it has made an application to one or more recognised stock exchanges for listing of such securities therein. However, where the application is made to more than one recognised stock exchanges, the issuer shall choose one of them as the designated stock exchange. Further, where any of such stock exchanges have nationwide trading terminals, the issuer shall choose one of them as the designated stock exchange;
Explanation.-For any subsequent public issue, the issuer may choose a different stock exchange as a designated stock exchange subject to the requirements of this regulation;
(b) it has obtained in-principle approval for listing of its revenue bonds on the recognised stock exchanges where the application for listing has been made;
(c) credit rating has been obtained from at least one credit rating agency registered with SEBI and is disclosed in the offer document. However, the revenue bonds intended to be issued shall have a minimum investment grade rating.
Further, where credit ratings are obtained from more than one credit rating agencies, all the ratings, including the unaccepted ratings, shall be disclosed in the offer document;
(d) it has entered into an arrangement with a depository registered with SEBI for dematerialisation of the revenue bonds that are proposed to be issued to the public, in accordance with the Depositories Act, 1996 and regulations made there under.
• The revenue bonds shall have a minimum tenure of three years or such period as specified by SEBI from time to time.
• The revenue bonds shall have a maximum tenure of thirty years or such period as specified by SEBI from time to time.
• The issuer shall appoint one or more merchant bankers at least one of whom shall be a lead merchant banker.
• The issuer shall create a separate escrow account for servicing of revenue bonds with earmarked revenue.
• The issuer shall appoint a monitoring agency such as public financial institution or a scheduled commercial bank to monitor the earmarked revenue in the escrow account. However, where the issuer is corporate municipal entity, it shall appoint a debenture trustee in accordance with the provisions of SEBI (Debenture Trustees) Regulations, 1993 and Companies Act, 2013.