ReferIndia News Municipal bonds to be eligible for repo, reverse repo deals: New asset class to help boost urban infra funding

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Municipal bonds to be eligible for repo, reverse repo deals: New asset class to help boost urban infra funding

Published on: Oct. 28, 2025, 5:20 p.m. | Source: Livemint

Municipal bonds have largely remained illiquid, held by a narrow pool of long-term investors such as pension or ESG funds. By allowing their use in repo markets, the government has allowed a wider spectrum of financial participants to invest in these securities.

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