The Ministry of Corporate Affairs has approved the application submitted by online bond platform providers for the formation of their industry body, people aware of the development told Moneycontrol on November 24.
The name under which the association is registered is ‘OBPP Association’, a source said.
“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) and that the company is Company limited by guarantee,” the document accessed by Moneycontrol of Ministry of Corporate Affairs showed.
Under regulatory ambit
On November 2, Moneycontrol reported that the online bond platform providers (OBPP) association has submitted its application for incorporation to the Registrar of Companies (RoC), which falls under the Ministry of Corporate Affairs.
“We have submitted our application to the registrar, and it is likely to get completed in the next 15-20 days,” a source had said on condition of anonymity.
Also read: MC Exclusive | Online bond platforms to register new industry body soon
In June, Moneycontrol reported, citing sources, that a clutch of online bond platforms in India will likely form an industry association.
Around 16-18 members, or bond portals, are part of this association. This includes IndiaBonds, GoldenPi, The Fixed Income, Wint Wealth, BondsKart, BondsIndia, Bond Bazar, Grip Invest, and Aspero, among others.
Online bond platforms are companies that sell bonds or non-convertible debentures (NCDs) to investors, especially retail investors, through their websites or mobile applications (apps).
The securities markets regulator released its ‘Registration and Regulatory Framework for Online Bond Platform Providers (OBPP)’ in November 2022.
As noted by the regulator, given the significant increase in the number of people transacting on online bond platforms it was time they were brought under a regulatory framework.
This was later amended after some mis-selling happened on some platforms.
Recently, some OBPPs have started offering fixed deposits (FDs) to investors, eyeing a piece of the distribution income from a lucrative segment of the market.
Wint Wealth and GoldenPi are selling corporate FDs on their websites or through other website links. BondsIndia showcases FD products and their returns.
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