SEBI has recently made it mandatory for all “online bond platform providers” to register themselves with SEBI as Stock Brokers.
Online Bond platform provider (OBPP)
“Online bond platform provider” means any person operating or providing an online bond platform and “online bond platform” means any electronic system, other than a recognised stock exchange or an electronic book provider platform, on which the debt securities which are listed or proposed to be listed, are offered and transacted
Eligibility
As per new regulation, any person who wish to act as Online Bond platform provider shall obtain a certificate of registration from SEBI as a stock broker under the Securities and Exchange Board of India (Stock Brokers) Regulations, 1992.
Existing online providers shall obtain certificate within 3 months or within such period as may be prescribed by SEBI or if it has made an application for grant of a certificate of registration within the specified period, till the disposal of such application by SEBI.
The new norms was introduced w.e.f 9th November 2022 by amending Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021.
This would help the enhance the confidence of non-institutional investors to rely on registered online platforms. The investors could also stay away from unregistered online bond providers. The experts are hopeful that more controls and checks would be introduced in this line of securities trade to provide a low-risk, secure environment for investors willing to enter bond market.
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