Amid growing investor interest, Sebi plans to regulate online bond platforms
At a time when more and more investors, especially non-institutional players, are using online bond platforms, a regulatory framework for such platforms is needed, according to a consultation paper from the Securities and Exchanges Board of India.
“…they (online bond platforms) do not fall under any regulatory jurisdiction, i.e. the platform providers are not registered with any regulator. This has given rise to a need to guide and regulate these platforms in order to put in place, among others, regulatory oversight, common standard practices, investor redress mechanism, etc. said the consultation document, which was uploaded to the SEBI website on Thursday. .
The growing interest in online bond platforms over the past two years has been driven by falling fixed deposit yields in a historically low interest rate regime and greater internet penetration, according to the newspaper.
The consultation document proposes regulations to address the risks identified by the regulator.
Public comments will be accepted until August 12, the Sebi said.