On 14-11-2022, the Securities and Exchange Board of India has notified the registration and regulatory framework for the working of Online Bond Platforms (OBPs), in order to streamline the operations of OBPs and to facilitate the participation of investors in the bond market.
Key points:
A framework has been prescribed for entities operating/ desirous of operating as OBPPs under regulation 51A of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (‘NCS Regulations’):
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Such entity shall be a company incorporated in India and register itself as a stock broker in the debt segment of the Stock Exchange (s);
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An entity acting as an OBPP on or prior to this circular coming into force, shall cease to offer products or services or securities on its OBP other than Listed Debt Securities and Debt securities proposed to be listed through a public offer.
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Such OBPP shall divest itself of offerings of other products or services or securities.
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Such entities shall comply with Regulation 51A of NCS Regulation i.e. compulsory registration of online bond platform providers for issuing non-convertible securities.
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