The Ministry of Corporate Affairs (MCA) has reportedly approved the application submitted by online bond platforms for the formation of an industry body, the Online Bond Platform Providers (OBPP) association.
Online bond platforms are companies that sell bonds or non-convertible debentures (NCDs) to investors, especially retail investors, through websites or mobile apps.
A source told Moneycontrol that the body has been registered under the name ‘OBPP Association’.
“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,” stated a regulatory filing accessed by the publication.
The development comes nearly three weeks after online bond platform providers submitted an application to the Registrar of Companies (RoC). In August, reports surfaced that digital bond platforms were looking to team up in the form of an industry body.
Around 16-18 members, or bond portals, are part of this association. The association comprises names like IndiaBonds, GoldenPi, The Fixed Income, Wint Wealth, BondsKart, BondsIndia, Bond Bazar, Grip Invest, and Yubi Invest, among others.
The move comes against the background of the market regulator, SEBI, releasing its ‘Registration and Regulatory Framework for OBPP’ in November 2022. The group is expected to pitch the demands of the budding industry before the government and lobby for favourable regulations for the ecosystem.
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