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TMI BlogAdherence 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 PlatformsX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequential changes to the OBP circular. Accordingly, Online Bond Platform Providers are advised the following: Restriction of products offered on an Online Bond Platform: 6.1. It is reiterated that an entity acting as an Online Bond Platform Provider shall cease to offer on its Online Bond Platform or any other platform/ website, products or services not permitted under the clause 5.2 of the OBP circular (as revised below). 6.2. It is also reiterated that an entity acting as an Online Bond Platform Provider shall divest itself of offerings of other products/ securities or services. 6.3. A holding company, subsidiary or associate of an Online Bond Platform Provider or any third party shall not utilize the name/ b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ector regulator viz. SEBI, RBI, IRDAI, or PFRDA, shall neither have access to or receive any information about a user of the Online Bond Platform nor cross-sell products/ securities or services to a user of the Online Bond Platform. 7. Securities that can be offered on Online Bond Platforms: Taking into account representations from Online Bond Platform Providers, it has been decided to permit them to offer certain other securities on their Online Bond Platforms. Accordingly, the provisions of Clause 5.2 of the OBP circular stand revised as under: 5.2 An entity acting as an Online Bond Platform Provider on or prior to November 14, 2022, shall divest itself of offerings of products or services or securities on its Online ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re outlined in the Annex to this circular. 10. Any Online Bond Platform Provider who fails to comply with the provisions of this circular shall be liable for action specified under the SEBI Act and any rules, regulations and circulars issued thereunder. 11. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 55 (1) of the SEBI (Issue and Listing of Non-convertible Securities) Regulations, 2021 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 12. This circular shall come into force with immediate effect. 13. The Stock Exchange(s) are dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circular shall be routed and settled through a Stock Exchange mechanism, unless otherwise specified by RBI. 2. The phrase debt securities mentioned in Para 8 of Annex A to the OBP circular shall be replaced by the phrase eligible securities as specified in clause 5.2 of this circular . 3. The phrase debt securities mentioned in Para 11.2.2 of Annex A to the OBP circular shall be replaced by the phrase eligible securities as specified in clause 5.2 of this circular . 4. The header to Annex-B to the OBP circular shall be revised as under: Minimum Disclosure Requirements (as applicable) for each security offered on the Online Bond Platform 5. The phrase debt securities mentioned in Para ..... X X X X Extracts X X X X X X X X Extracts X X X X
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