2022
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Vadodara
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Pune
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Lucknow
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Indore
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Detailed explanation-1: -Given its high subscription and low yield price, the US Embassy and Treasury selected the municipal bond issued by the Vadodara Municipal Corporation for a case study on successful listing and a benchmark for other civic bodies eyeing stock exchanges.
Detailed explanation-2: -Bengaluru MC floated municipal bonds for the first time in India in 1997, followed by Ahmedabad MC in 1998. Since then, the Indian municipal bond market witnessed a healthy growth until the mid-2000s, with nine MCs raising around ₹1,200 crore (an average issue size of about ₹130 crore per corporation) (Chart III.
Detailed explanation-3: -The term “municipal bond” refers to a type of debt security issued by local, county, and state governments. They are commonly offered to pay for capital expenditures, including the construction of highways, bridges, or schools. Municipal bonds act like loans, with bondholders becoming creditors.
Detailed explanation-4: -Vadodara issued first-ever municipal bond.