Stable Money gets Online Bond Platform Providers licence from BSE

Till now, Stable Money has been only offering fixed deposits on the platform, but post the licence, the firm will now start selling corporate bonds

Stable Money, an online fixed income portal, on February 7 said the company has secured Online Bond Platform Providers (OBPP) licence from BSE.

Till now, Stable Money has been only offering fixed deposits on the platform, but post the licence, the firm will now start selling corporate bonds, according to a company press release.

The company is planning to start offering bonds with minimum ticket sizes of Rs 1,000 or lower, aiming for a broader user base, the release added.

The company is part of online bond platform association, Harish Reddy, co-founder, Stable Money said in an interaction with Moneycontrol.

“This license enables us to offer a broader spectrum of investment opportunities,” Saurabh Jain and Harish Reddy, Founders of Stable Money were quoted saying in the release.

Stable Money was founded by Jain and Reddy with investors including Titan Capital, Matrix Partners India and Lightspeed India Partners.

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).

In November, 2022, markets regulator Securities and Exchange Board of India (SEBI) released its circular ‘Registration and Regulatory Framework for Online Bond Platform Providers (OBPP)’.

The regulator had observed that given the significant increase in the number of people transacting on online bond platforms, it was time such firms were brought under a regulatory framework.

The Sebi circular was later amended after certain instances of misselling happened on some platforms.

On November 28, 2023, Moneycontrol exclusively reported Ministry of Corporate Affairs has approved the application submitted by online bond platform providers for the formation of an industry body under the name ‘OBPP Association’.