Multiple Choice Questions

With reference to the Municipal Bonds consider the following statements A municipal bond is a debt s...........

Economic and social issues(Phase-I/II) Others

With reference to the Municipal Bonds, consider the following statements

A municipal bond is a debt security issued by the Central Government for the municipalities.
Lucknow became the first city to raise municipal bonds in India.

Select the correct statement.

1 only

2 only

Both

None

Both statements are incorrect.

Recently, Rs. 200-crore worth Lucknow Municipal Corporation (LMC) bonds have been listed on the Bombay Stock Exchange (BSE).

A municipal bond (muni) is a debt security issued by a state, municipality or county to finance its capital expenditures, including the construction of highways, bridges or schools.
Through muni bonds, a municipal corporation raises money from individuals or institutions and promises to pay a specified amount of interest and returns the principal amount on a specific maturity date.
Lucknow becomes ninth city to raise municipal bonds, incentivised by the Ministry of Housing and Urban Affairs (Mohua) under Mission Amrut.
Between 1997 and 2010, the city corporations of Bengaluru, Ahmedabad and Nashik experimented with bond issues but barely managed to raise Rs. 1,400 crore.

Hence option 4th is correct.

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