Adherence to provisions of regulation 51A of the SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021

Adherence to provisions of regulation 51A of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 by Online Bond Platform Providers on product offerings on Online Bond Platforms

1. Regulation 51A of SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (NCS Regulations), inter-alia, defines “online bond platform provider” as‘ any person operating or providing an online bond platform’ and “online bond platform” as‘ any electronic system, other than a recognised stock exchange or an electronic book provider platform, on which the debt securities which are listed or proposed to be listed, are offered and transacted.’
   
2. SEBI Circular SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2022/154 dated November 14, 2022 (‘OBP Circular’) provides for the registration and regulatory framework for Online Bond Platform Providers. Clause 5.2 of the OBP circular reads as follows:
   “An entity acting as an OBPP on or prior to this circular coming into force, shall cease to offer products or services or securities on its OBP other than the following:
   5.2.1. Listed debt securities and
   5.2.2. Debt securities proposed to be listed through a public offering. Such OBPP shall divest itself of offerings of other products or services or securities.”
   
3. While a few Online Bond Platform Providers have commenced operations, the following are observed:

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