New Delhi:
Capital market regulator SEBI has introduced a regulatory framework to facilitate providers of online bond platforms that sell listed debt securities.
Under the new rules, no one would act as a provider of online bond platforms without obtaining a stockbroker registration certificate from SEBI, the regulator said in a notice released Friday.
Such a person should comply with the registration requirements and such other requirements as may be made by the regulator from time to time.
The move will also boost confidence among investors, especially non-institutional investors, as the platforms would be offered by SEBI-regulated intermediaries.
An individual acting as a provider of online bond platforms without proof of registration prior to the effective date of this Regulation may continue to do so for a period of three months.
The regulator has defined an online bond platform as any electronic system, with the exception of a recognized stock exchange or electronic book offering platform, on which the bonds listed or proposed to be listed are offered and traded. Furthermore, Online Bond Platform Provider means any person who operates or offers such platform.
To this end, the Securities and Exchange Board of India (SEBI) has amended its NCS (Issue and Listing of Non-Convertible Securities) regulations. The new standard will come into effect from 9 November.
Separately, SEBI has filed rules lowering the minimum ownership requirement of Real Estate Investment Trust (REITs) units by sponsors to 15 percent from 25 percent currently, a move intended to encourage more companies to sell REITs.
“The sponsor(s) and sponsor group(s) will jointly hold a minimum of 15 percent of the total units of the REIT for a period of at least three years from the date of listing of such units under the initial offering. a post-issue basis,” SEBI said.
However, any sponsor and sponsor group holdings in excess of the minimum holdings would be held for at least one year from the listing date of such units.
In another notification, the regulator has discontinued a separate regulatory framework for unlisted Infrastructure Investment Trust (InvIT). This would come into effect on January 1 next year.
The changes came after the Sebi board approved proposals in this regard at the end of September.
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