SEBI Consultation Paper on Online Bond Platform Advertising
Why in the news
SEBI floated rules on how bond-trading apps may advertise, aiming to spread awareness of bonds among ordinary investors.
Key facts
- Proposal: an advertisement code for OBPPs, released as a consultation paper.
- Reason: to improve reach and investor awareness of this asset class.
- Framework began: November 2022.
- Registration: platforms enrol as brokers for the debt segment on a recognised exchange.
About OBPPs
- Work like a share-broking app, but for corporate bonds.
- Bonds used to be an institutional preserve, traded in large lots by banks, insurers and mutual funds.
- OBPPs slice the market into small units, so a retail investor with ₹50,000 can take part.
Exam angle
- Regulator: SEBI.
- Abbreviation: OBPP, Online Bond Providers Platform.
- Registration category: debt-segment broker on a stock exchange.