Registration and regulatory framework for Online Bond Platform Providers (OBPPs)
Summary
This circular establishes a regulatory framework for Online Bond Platform Providers (OBPPs) under SEBI regulations to enhance investor protection and market transparency. It mandates that OBPPs must register as stock brokers in the debt segment and comply with specific operational, technological, and compliance requirements outlined in Annex A. The document outlines immediate enforcement, penalties for non-compliance, and directions for Stock Exchanges to monitor these platforms. This section mandates risk profiling, issuance of order receipts, deal sheets, and quote receipts for transactions on the Order Book Platform. It establishes requirements for investor alerts, minimum disclosures, advertisement codes, grievance redressal, and comprehensive risk management frameworks. Additionally, it outlines data integrity obligations, reporting duties to stock exchanges, and specific disclosure and advertising standards.
Text
Pursuant to discussions with market participants and stakeholders, vide notification dated November 09, 2022, 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
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)
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 offering
Such entities, in addition to complying with regulation 51A of the NCS Regulations, shall ensure compliance with the requirements specified in Annex - A to this circular
The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021
This circular shall come into force with immediate effect
An OBPP who fails to comply with any of the provisions of this circular, shall be liable for action under the SEBI Act and any rules, regulations and circulars issued thereunder
bring the provisions of this circular to the notice of the Stock Brokers and also disseminate the same on their websites
make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above directions in coordination with one another to achieve uniformity in approach and communicate regarding the same to SEBI
monitor the operations carried out by an OBPP
The entity has appointed a Company Secretary as a compliance officer
The entity has appointed at least two qualified key managerial personnel with experience of at least three years in the securities market
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Source: SecMarx — Registration and regulatory framework for Online Bond Platform Providers (OBPPs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.