Under the new rule, no person shall act as an online bond platform provider without obtaining a certificate of registration as a stock broker from SEBI
Under the new rule, no person shall act as an online bond platform provider without obtaining a registration certificate from SEBI as a stock broker
Capital markets regulator Securities and Exchange Board of India (SEBI) has introduced a regulatory framework to facilitate providers of online bond platforms selling listed debt securities.
In a notification made public on Friday, the regulator said that under the new rules, no person shall act as an online bond platform provider without obtaining a certificate of registration as a stock broker from SEBI.
Such person shall comply with the conditions of registration and such other requirements as may be specified by the regulator from time to time. The move will also boost confidence among investors, especially non-institutional investors, as the platform will be provided by SEBI-regulated intermediaries.
A person acting as an online bond platform provider without a certificate of registration prior to the date of entry into force of this regulation may continue to do so for a period of three months.
The regulator has defined online bond platform as any electronic system, other than a recognized stock exchange or electronic book provider platform, on which the offering and transaction of debt securities offered to be listed or to be listed is carried out. Further, Online Bond Platform Provider means any person who operates or provides such Platform.
To this effect, SEBI has amended the NCS (Issue and Listing of Non-Convertible Securities) Regulations. The new norm has come into effect from November 9.
Separately, SEBI has notified rules, which reduce the minimum holding requirement of Real Estate Investment Trust (REIT) units by sponsors from 25 per cent currently to 15 per cent, with an aim to encourage more companies to float REITs. To do.
“The sponsor(s) and the sponsor group shall collectively hold a minimum of 15 per cent of the total units of the REIT as per the initial offer for a period of at least three years from the date of listing of such units on a post-issue basis,” SEBI said. However, any holding of the sponsor and the sponsor group in excess of the minimum holding shall be held for at least one year from the date of listing of such units.
In another notification, the regulator has discontinued a separate regulatory framework for unlisted infrastructure investment trusts (InvITs). This will come into effect from January 1 next year.
The amendments were made after the SEBI board approved proposals in this regard in late September.