MC Exclusive | Yubi Group likely to launch online bond platform for retail investors by October 12

Yubi Group has obtained debt authorisation from regulatory authorities including stockbroking, online bond platform provider (OBPP), merchant banker and research analyst licences.

Yubi Group is likely to launch an online bond platform for retail investors by October 10-12 to expand its footprint in the retail segment, source close to the development told Moneycontrol on October 3.

Yubi is a fintech company that powers the end-to-end debt lifecycle.

“The company is planning to foray into the retail investor segment, it is gearing up to launch an online bond platform scheduled for release in the first week of October 2023,” a person aware of the matter said.

The person added that early indicators from the beta launch of the B2C application and an employee referral programme indicate user interest, with more than 1,000 signups with users trading regularly.

Yubi Group has obtained debt authorisation from regulatory authorities including stockbroking, online bond platform provider (OBPP), merchant banker and research analyst licences.

These were acquired by the company after the Securities and Exchange Board of India (SEBI) in November last year stipulated that online bond platforms selling listed debt securities must acquire a certificate of registration as a stockbroker in the wholesale debt segment under the SEBI (Stockbrokers) Regulations to function as an OBPP.

SEBI’s initial regulations were later revised in response to instances of mis-selling observed on different platforms.

In a June 16 circular, SEBI said OBPPs can offer the following: listed debt securities, listed municipal debt securities and listed securitised debt instruments; debt securities, municipal debt securities and securitised debt instruments proposed to be listed through a public offering; listed government securities, state development loans and treasury bills; and listed sovereign gold bonds.

Also read: Online bond platforms see sharp jump in retail participation. Here’s what data shows

Previous business

Prior to this launch, Yubi Group was already in the business of selling bonds to institutional investors, family offices, and high-net-worth individuals.

Last year, the company launched its fixed-income platform, Yubi Invest, for wealth management firms and financial advisors. On this platform, the company offers corporate bonds to investors. The company plans to expand its offering of corporate bonds to retail investors with the new online bond platform, the source said.

According to Yubi Invest website, the company currently offers market-linked debentures, non-convertible debentures, commercial papers and tax-free/perpetual bonds. Similar products are likely to be sold on the newly launched platform.

Also read: Online bond platforms back in the spotlight after debt fund tax but liquidity issues remain

Online bond platform association

According to the person close to the development, Yubi is also to be part of the online bond platform association, which is likely to be formed in the next few months.

On June 7, Moneycontrol reported that a clutch of online bond platforms in India is likely to form an industry association in the next three to four months. Currently, there are 17-18 members looking to form this association and talks are at an early stage. SEBI has been encouraging the move, sources said.

Other companies

Currently, there are more than 15 SEBI-recognised online bond trading platforms in India, according to market participants. These include IndiaBonds, GoldenPi, The Fixed Income, Wint Wealth, Bondskart, Bonds India, Bond Bazar and Yubi Invest, among others.

These bond platforms offer bank bonds, public sector enterprise bonds, government guarantee bonds, state development loans, sovereign gold bonds, real estate bonds and public issue of bonds, among others.