Adherence to provisions of regulation 51A of SEBI Issue and Listing of Non Convertible Securities Regulations 2021 by Online Bond Platform Providers on product offerings on Online Bond Platforms
Summary
This circular mandates that Online Bond Platform Providers restrict offerings to specific listed debt securities, government securities, and sovereign gold bonds. It prohibits providers from linking to or sharing user data with entities offering unregulated products or services. The document also updates grievance redressal mechanisms and routing requirements for order execution.
Text
Regulation 51A defines 'online bond platform provider' as any person operating an online bond platform and 'online bond platform' as any electronic system on which listed debt securities are offered and transacted.
An entity acting as an Online Bond Platform Provider shall cease to offer on its platform or any other website products or services not permitted under clause 5.2 of the OBP circular.
An entity acting as an Online Bond Platform Provider shall divest itself of offerings of other products/securities or services.
A holding company, subsidiary or associate of an Online Bond Platform Provider shall not utilize the name/brand name of the Provider for undertaking any activity or offering products not regulated by a financial sector regulator.
An Online Bond Platform Provider shall not have on its platform any link or tab to websites/platforms of its holding company, subsidiary or associate undertaking unregulated activities.
If a link exists to platforms regulated by RBI, IRDAI, or PFRDA, a disclaimer stating '<Name of the product> is regulated by <RBI/ IRDAI/ PFRDA>' shall be displayed in legible font upon clicking.
A holding company, subsidiary or associate offering unregulated products shall neither have access to nor receive any information about a user of the Online Bond Platform nor cross-sell products to such users.
OBPPs may offer: Listed debt/municipal debt/securitised debt instruments; those proposed to be listed via public offering; Listed Government Securities, State Development Loans, Treasury Bills; and Listed Sovereign Gold Bonds.
The mechanism for redress of investor grievances shall be as specified in Chapter VII of Master Circular for Stock Brokers dated May 17, 2023.
Any Online Bond Platform Provider who fails to comply with the provisions of this circular shall be liable for action specified under the SEBI Act and rules/regulations/circulars issued thereunder.
The Circular is issued in exercise of powers conferred under Section 11(1) of the SEBI Act, 1992 read with Regulation 55(1) of the NCS Regulations, 2021.
This circular shall come into force with immediate effect.
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Source: SecMarx — Adherence to provisions of regulation 51A of SEBI Issue and Listing of Non Convertible Securities Regulations 2021 by Online Bond Platform Providers on product offerings on Online Bond Platforms. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.