The Online Bond Platform Providers (OBPP) Association is likely to release regulations for all its members in the next three weeks, sources have told Moneycontrol.
“The association has received the approval for the by-laws from the executive committee and its set to release them in the next three weeks,” a source said. The regulations are in line with those of the Association of Mutual Funds in India (AMFI), the sources said.
Online bond platforms are companies that sell bonds or non-convertible debentures (NCDs) to investors, especially retail investors, through their websites or mobile applications.
The association, which will complete a year in November end, has collected Rs 5 lakh from some of its members in membership fee for its development and that of its website, another source said.
"The website for the association is ready and currently in the beta testing phase. It will be rolled out in one week and after the release of regulations, it will be placed on the website," the source said.
Around 16-18 bond portals, including IndiaBonds, GoldenPi, The Fixed Income, Wint Wealth, BondsKart, BondsIndia, Bondbazaar, Grip Invest and Aspero, are part of the association.
These platforms generally offer instruments which include bank bonds, those issued by public sector undertakings, government guarantee bonds, state development loans, sovereign gold bonds, real estate bonds and public issue of bonds.
These platforms have become important in recent years as they allow retail investors to invest in corporate bonds. The reduction of face value on corporate bonds, too, has boosted investor interest.
Earlier this year, the OBPP Association of India appointed Aditi Mittal of IndiaBonds as the chairperson.
It named Suresh Darak from Bondbazaar as the vice-Chairperson, Tirth Shah of The Fixed Income the secretary and Ajay Manglunia of JM Finance the honorary member.
On November 28, Moneycontrol was the first to report that the corporate affairs ministry approved the application submitted by online bond platform providers for setting up the industry body. The body is registered under the name OBPP Association.
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