Sebi proposes regulatory framework for online bond platforms

Capital markets regulator Sebi on Thursday proposed a regulatory framework for the online bond platforms that are selling listed debt securities. Under the proposal, bond platforms should register as stock brokers (debt segment) with the Securities and Exchange Board of India (Sebi) or be run by Sebi-registered brokers, according to a consultation paper. This will also enhance the confidence among investors, particularly non-institutional investors, as the platforms would be provided by Sebi-regulated intermediaries. Additionally, the stock-broker regulations will be applicable to these entities, which would govern their code of conduct and other aspects related to their operations and risk management. "The debt securities offered for buy/ sale by the online bond platforms shall be only listed debt securities," Sebi proposed. It has been proposed that listed debt securities issued on a private placement basis, offered for sale on bond platforms should be locked in for a period of

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