Subscribe To Our Free Newsletter |
Municipalities can look at escrow account structure to garner funds: Buch
Markets regulator Sebi's chief Madhabi Puri Buch on Wednesday said municipal authorities can look at having specific escrow accounts to garner funds for various urban infrastructure projects.
At an event in the national capital, she said there are a good number of investors who are waiting to invest in urban infrastructure projects.
She said that one thing that can help in garnering funds is credit ratings.
Generally, an entity with a higher credit rating will be able to raise funds more easily compared to those having less credit worthiness.
"Now, the question is to get credit rating. The beautiful part (of) what we have learnt over the last few years' issuances that we have had is (the) structure of creating escrow accounts and therefore, ring fencing certain cash flows. It has really created a fantastic structure in which investors have a lot of faith," the Sebi Chairperson said.
Such an escrow account structure will give investors an understanding of "what is outside the ring