Centre permits online bond platform providers to form industry body
The Indian government has given the green light to online bond platform providers to establish their industry body, the 'OBPP Association.' This decision follows the submission of an application for incorporation to the Registrar of Companies (RoC) on November 2. According to a document obtained by Moneycontrol, the certification states, "I hereby certify that 'OBPP ASSOCIATION' is incorporated on this TWENTY FIRST day of NOVEMBER TWO THOUSAND TWENTY-THREE under the Companies Act, 2013 (18 of 2013)."
The association is made up of 16-18 bond portals
Comprising around 16-18 members, the OBPP Association includes well-known bond portals. They include IndiaBonds, Bond Bazar, Grip Invest, GoldenPi, The Fixed Income, Wint Wealth, BondsKart, BondsIndia, and Yubi Invest. These online bond platforms cater to investors, particularly the retail ones, by selling bonds or non-convertible debentures (NCDs) through their websites or mobile apps.
SEBI brought a regulatory framework last year
SEBI introduced its 'Registration and Regulatory Framework for Online Bond Platform Providers' in November 2022. This was done in response to a significant rise in users transacting on online bond platforms. The framework was later amended following some mis-selling incidents on certain portals. Recently, OBPPs like Wint Wealth and GoldenPi have begun offering fixed deposits (FDs) to investors, aiming to capitalize on a profitable market segment and generate distribution income.
