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Sebi forms detailed regulatory framework for online bond platform providers
Market regulator Sebi on Monday came out with a detailed regulatory framework for online bond platform providers in a bid to streamline their operations.
Online Bond Platform Providers (OBPPs) would be companies incorporated in India and they should register themselves as stock brokers in the debt segment of the stock exchange, as per the framework that would be effective immediately.
The Securities and Exchange Board of India (Sebi) said that an entity acting as an OBPP prior to the new rules coming into force, cannot offer products or services on its platform except listed debt securities and debt securities proposed to be listed through a public offering.
"With the bond market offering tremendous scope for development, particularly in the non-institutional space, there is a need to place checks and balances in the form of transparency in operations and disclosures to the investors dealing with such Online Bond Platforms (OBPs), measures for mitigation of payment," Sebi said.
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