The Securities and Trade Board of India (Sebi) has come out with an in depth regulatory framework for on-line bond platform suppliers in a bid to streamline their operations.
On-line Bond Platform Suppliers (OBPPs) could be firms integrated in India and they need to register themselves as inventory brokers within the debt section of the inventory trade, as per the framework that might be efficient instantly. OBPPs can’t supply services or products on its platform besides listed debt securities and debt securities proposed to be listed by way of a public providing.
Such an entity needs to be an organization integrated in India and register itself as a inventory dealer within the debt section of the inventory exchanges. “With the bond market providing large scope for growth, notably within the non-institutional area, there’s a want to put checks and balances within the type of transparency in operations and disclosures to the traders coping with such on-line bond platforms (OBPs), measures for mitigation of cost,” it stated.
There was a rise within the variety of OBPPs providing debt securities to non-institutional traders of late.T right here has additionally been an increase within the variety of registered customers who’ve transacted by way of such OBPs.
Whereas OBPs present an avenue for traders, notably non-institutional traders to entry the bond market, their operations have been exterior Sebi’s regulatory purview, the regulator famous. After acquiring
registration as a inventory dealer within the debt section of a inventory trade, an entity must apply to the bourse to behave as an OBPP.
In its utility, the entity must make sure that roles and obligations, expertise, working framework — entry and participation, Know Your Shopper (KYC) for on-boarding traders and sellers and danger profiling of traders — are complied with.