wordpress blog stats
Connect with us

Hi, what are you looking for?

What can online bond platforms sell on their website, and what cannot they sell? SEBI clarifies

The SEBI circular could make it harder for startups to raise funds via online platforms as such platforms will have to exercise more due diligence on what they list on their website

The Securities and Exchange Board of India (SEBI) on June 16 issued a circular clarifying that online bond platforms (OBPs) are prohibited from selling unlisted securities and from linking to other platforms that are selling securities not regulated by a financial sector regulator. The circular was issued a few days after LiveMint pointed out that some online bond platforms are leveraging regulatory ambiguity to sell unlisted securities either on their own platform or on a separate platform that is linked or appears as a tab on their website. "We are still in a nascent stage of education and awareness amongst non-institutional investors about the benefits of direct bonds and fixed-income investments. In this scenario, investor protection and knowledge are at the core of this journey. The circular ensures that listed/to-be-listed securities offered are not mixed with unlisted bonds or any other form of fixed-income financing for the investor." — Vishal Goenka, co-founder, IndiaBonds.com, to The Hindu Businessline The circular also comes a few months after the Ministry of Corporate Affairs (MCA) went after a startup for raising funds through Tyke, an online fundraising platform. Both, the SEBI circular and the MCA order, could make it harder for startups looking to raise funds from the public through online platforms as these platforms will have to now exercise more due diligence on what they list on their website. But, this is not a complete restriction on startup fundraising through online platforms. Online bond platforms can still link out to pages or websites…

Please subscribe/login to read the full story.
Written By

Free Reads

News

Vaishnaw's remarks come a day after Google removed apps belonging to Matrimony.com, Info Edge (Naukri and 99 Acres), Shaadi.com, Altt, Truly Madly, Stage, Quack...

News

Paytm has started distancing itself from PPBL in light of the current negative spotlight on PPBL.

News

The move can be seen as an attempt by Paytm to distance itself from the troubled Paytm Payments Bank, which has been significantly restricted...

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ