MUMBAI: The Securities and Exchange Board of India (Sebi) on Friday restricted online bond platform providers from offering products other than listed debt securities on their platforms.
Sebi allowed them to offer securities such as government securities, treasury bills, listed Sovereign Gold Bonds, listed municipal debt securities, and listed securitised debt instruments on their online bond platforms, according to a circular.
Under the rules, Online Bond Platform Providers (OBPPs) need to register themselves as stock brokers in debt segment of the stock exchange. OBPs offer an avenue for investors, particularly non-institutional investors to access the bond market.
Sebi said the holding company, subsidiary, or associate of an online bond platform provider will not utilise the name, brand name, or any name resembling that of the online bond platform provider for offering products and services that are not regulated by a financial sector regulator.
This comes after Sebi noted a few OBPPs have commenced operations and observed that certain OBPPs continue to offer products other than listed debt securities and debt securities proposed to be listed via a public offer on their platforms.
They are offering unlisted bonds on a separate platform or website and have not divested such offerings. Certain OBP providers have given a link on online bond platform to another platform for transacting in unlisted bonds and other products, Sebi noted.
