Sebi to introduce regulatory framework to facilitate online bond platform providers

Sebi to introduce regulatory framework to facilitate online bond platform providers

Mumbai, Capital markets regulator Sebi on Friday decided to introduce a regulatory framework to facilitate providers of online bond platforms that are selling listed debt securities. Under the framework, such platforms should register as stock brokers (debt segment) with the Securities and Exchange Board of India (Sebi) or be run by Sebi-registered brokers.

This will also enhance the confidence among investors, particularly non-institutional investors, as the platforms would be provided by Sebi-regulated intermediaries.

Also, the board of Sebi at its meeting here on Friday cleared a proposal to reduce the face value of listed privately placed debt securities.

Further, the regulator would issue a procedural circular detailing the specifics and mechanics of the operations of the online bond platform providers, according to a release issued by Sebi after its board meeting.

In addition, the board has approved the proposals relating to the reduction in the minimum holding requirement of units from 25 per cent to 15 per cent by sponsor(s) and sponsor group(s) of the total outstanding units of the Real Estate Investment Trusts (REITs) on post-initial offer basis.

Also, it cleared the proposals relating to discontinuation of a separate regulatory framework for unlisted Infrastructure Investment Trusts (InvIT).

Among others, the regulator has approved the proposal to amend rules governing Alternative Investment Funds (AIF) in order to prescribe the timeline for declaring first close of a scheme of an AIF along with the minimum corpus at which the first close may be declared.

Further, the board has approved a proposal for amending norms governing clearing corporations for orderly winding down of such corporations.

Sebi said that every clearing corporation will be required to ensure that the new framework provides for the timely and orderly settlement or transfer of position and the transfer of the collateral, deposit, margin or any other asset(s) of the members to another recognised clearing corporation that would take over the operations of the clearing corporation.

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