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Mahesh

16/11/22 22:00 PM IST

Sebi puts in place regulatory framework for online bond platform providers

In News 
  • Securities and Exchange Board of India (Sebi) on Monday came out with regulatory framework for online bond platform providers in a bid to streamline their operations.
New Rules 
  • After obtaining registration as a stock broker in the debt segment of a stock exchange, an entity would have to apply to the bourse to act as an OBPP.
  • The new rules mandate registration certificate as a stock broker from SEBI to act as an online bond platform provider.
  • Those acting as an online bond platform provider without registration certificate provider prior to 9th november 2022 continue to do so for a period of three months.
  • People will have to comply with the conditions of registrations as specified by the SEBI from time to time.
  • The entity would have to ensure compliance with the minimum disclosure requirements. It would also have to disclose on its platform all instances of conflict of interest, if any, arising from its transactions or dealings with related parties.
Bond 
  • Bonds are units of corporate debt issued by companies and securitized as tradeable assets.
  • A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders.
  • Variable or floating interest rates are also now quite common.
  • Bond prices are inversely correlated with interest rates: when rates go up, bond prices fall and vice-versa.
Source- Live Mint

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