Wint Wealth and Grip Invest, two online bond platforms, are planning to submit applications to the Securities and Exchange Board of India (SEBI) for stock broker licenses in order to comply with the new regulations that require bond trading firms to register with the regulator.
On November 11, the regulations for online bond platforms that sell listed debt securities were made public by SEBI. As per the principles, an individual or organization will only go about as an internet-based bond stage supplier with an endorsement of enrollment as a stock representative under the SEBI (Stock Dealers) Guidelines.
The permit application process is in progress. They will submit the application in January. Nikhil Aggarwal, the founder and chief executive officer of Grip Invest, stated, “they are currently working on the application together with our advisors and are waiting to get more clarity before applying.”
Wint Wealth co-founder Anshul Gupta stated, “We are finishing the compliance work for the application and will be applying for a license next month (January).”
Because the deadline is in February 2023, industry experts predicted that more applications would be in January. Experts say that the new rules will likely deepen the secondary market for corporate bonds, allowing more retail investors to participate.
Gupta went on to say, “These SEBI regulations are industry-friendly and will allow more retail participation in the bond market, which was mostly dominated by institutional investors.”
Patel of Yubi Invest stated that these regulations will eliminate the gray areas and provide regulatory oversight, fostering investor trust.
Investors become perplexed regarding the credibility of the business they are dealing with as a result of the lack of entry barriers that typically exist in unregulated markets or platforms. Investors will feel more assured about the management of their investments as a result of the new regulations.
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