To mobilise the funds required to build 100 smart cities and other urban programmes, stock market watchdog SEBI has created guidelines for municipal bodies to raise money from the market. However, these will be applicable only to the bonds issues to the public. Detailed safeguards like, the issuer not having a negative net worth and an investment grade rating have also been prescribed.

The money so mobilized should be for a particular project, and the revenue generated should be credited into an escrow account.