Capital markets regulator Sebi has introduced a regulatory framework to facilitate the sale of listed debt securities by online bond platform providers.
Under the new rules, no one can act as an online bond platform provider without Sebi’s stockbroker registration certificate, the regulator said in an announcement on Friday.
These persons must comply with the conditions of registration and other requirements imposed by the regulatory body from time to time. The move will also boost investor confidence, especially non-institutional investors, as Sebi-regulated intermediaries will provide these platforms.
Providers of online bond platforms that have not obtained a registration certificate before implementing these regulations may continue to operate within three months.
The regulator defines an online bond platform as any electronic system other than a recognized stock exchange or ebook provider platform on which listed or proposed debt securities are offered and traded. Additionally, an online bond platform provider is anyone who operates or provides such a platform.
To this end, the Securities and Exchange Board of India (Sebi) has amended the NCS (Issue and Listing of Non-Convertible Securities) regulations. The new specification goes into effect on November 9.
Separately, Sebi notified the rules of lowering the minimum shareholding requirement for real estate investment trust (REIT) unit promoters to 15% from the current 25%, a move aimed at encouraging more companies to issue REITs.
“The sponsor and sponsor group shall collectively hold at least 15% of the total units in the REIT for a period of at least three years from the date the units are listed under the initial offer. On a post-publication basis,” Sebi said. However, any sponsor and sponsor group holdings that exceed the minimum holdings will be held for at least one year from the date the units are listed.
The regulator has terminated the separate regulatory framework for unlisted infrastructure investment trusts (InvITs) in a separate notice. This will take effect from January 1 next year. The amendments came after Sebi’s board approved proposals in late September.
