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**Report: Analysis of the Securities and Exchange Board of India (SEBI) Issue and Listing of Non-Convertible Securities Second Amendment Regulations, 2022**
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Issue and Listing of Non-Convertible Securities Second Amendment Regulations, 2022. The core purpose of this amendment is to regulate online bond platform providers by requiring them to register with SEBI as stock brokers. The key finding is the introduction of Chapter VIA, which mandates registration and sets a timeframe for compliance for existing providers.
**2. Introduction:**
This report provides an overview and analysis of the Securities and Exchange Board of India (SEBI) Issue and Listing of Non-Convertible Securities Second Amendment Regulations, 2022, based solely on the provided policy text. The aim is to inform affected parties about the key provisions and implications of this amendment.
**3. Policy Overview:**
* **Original Policy:** This amendment modifies the Securities and Exchange Board of India Issue and Listing of Non-Convertible Securities Regulations, 2021.
* **Core Objective(s):** Based on the text, the core objective of *this amendment* is to regulate entities operating online bond platforms, ensuring they are registered and compliant with SEBI's regulations. This implies a goal of increasing investor protection and market integrity within the online bond market.
**4. Background and Rationale:**
This amendment introduces registration requirements for Online Bond Platform Providers. The likely reason for this amendment is to address the growing prominence of online bond platforms and the potential risks associated with unregulated entities operating in this space. By requiring registration, SEBI aims to bring these platforms under its regulatory purview, thereby enhancing transparency, investor protection, and overall market stability. The amendment seeks to create a level playing field and standardize operations within the non-convertible securities market.
**5. Key Provisions / Changes:**
This amendment introduces Chapter VIA to the original regulations, focusing on Online Bond Platform Providers.
* **Specific Change:** The amendment inserts a new Chapter VIA titled "ONLINE BOND PLATFORM PROVIDERS" into the Securities and Exchange Board of India Issue and Listing of NonConvertible Securities Regulations, 2021.
* **New Rule/Provision:** The new chapter includes the following key provisions:
* **Registration Requirement:** No person shall act as an online bond platform provider without a certificate of registration from SEBI as a stock broker under the Securities and Exchange Board of India Stock Brokers Regulations, 1992. (Regulation 51A.1)
* **Compliance:** Registered providers must comply with registration conditions and other requirements specified by SEBI. (Regulation 51A.2)
* **Transitional Provision:** Existing online bond platform providers have three months from the date the amendment comes into force (or another period specified by the Board) to either cease operations or apply for registration. They can continue operating while their application is being processed. (Regulation 51A.3)
* **Definition:** "Online bond platform provider" means any person operating or providing an online bond platform, which is defined as any electronic system (excluding recognized stock exchanges or electronic book provider platforms) where listed or proposed-to-be-listed debt securities are offered and transacted.
* **Effect of the Change:** This change mandates that online bond platform providers must register with SEBI as stock brokers, subjecting them to the same regulatory oversight and compliance requirements as traditional stock brokers. This aims to increase transparency, investor protection, and market integrity in the online bond market.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are:
* Entities currently operating as online bond platform providers.
* Investors utilizing online bond platforms to trade in debt securities.
* The Securities and Exchange Board of India (SEBI) as the regulatory body.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Securities and Exchange Board of India (SEBI) is responsible for the implementation and enforcement of these regulations.
* **Timelines:** Existing online bond platform providers have a three-month window (or another period specified by SEBI) from the date of the amendment's enforcement to either register or cease operations. If they apply for registration within the three-month period, they can continue operating until SEBI makes a decision on their application.
* **Procedures:** Online bond platform providers must register as stock brokers under the Securities and Exchange Board of India Stock Brokers Regulations, 1992, implying they must adhere to the associated application process and meet the eligibility criteria.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes are:
* Increased regulatory oversight of online bond platforms.
* Enhanced investor protection due to stricter compliance requirements.
* Greater transparency in online bond transactions.
* A more level playing field for all participants in the non-convertible securities market.
* Potential consolidation in the online bond platform market as some providers may be unable or unwilling to meet the registration requirements.
**9. Conclusion:**
The Securities and Exchange Board of India Issue and Listing of Non-Convertible Securities Second Amendment Regulations, 2022, represents a significant step towards regulating the burgeoning online bond platform market. By mandating registration for online bond platform providers, SEBI aims to enhance transparency, protect investors, and promote the integrity of the non-convertible securities market. This amendment is important for both online bond platform providers and investors and will require providers to adapt their operations to comply with the new regulations.
Key Entities Referenced
SECURITIES AND EXCHANGE BOARD OF INDIA: Regulatory body for securities market in India.
Securities and Exchange Board of India Act, 1992: Act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Issue and Listing of NonConvertible Securities Regulations, 2021: Regulations pertaining to the issuance and listing of non-convertible securities.
Securities and Exchange Board of India Issue and Listing of Non Convertible Securities Second Amendment Regulations, 2022: Amendment to the Securities and Exchange Board of India Issue and Listing of NonConvertible Securities Regulations, 2021.
Official Gazette: Official publication for government notifications and regulations.
CHAPTER VIA ONLINE BOND PLATFORM PROVIDERS: New chapter inserted in Securities and Exchange Board of India Issue and Listing of NonConvertible Securities Regulations, 2021 regarding online bond platform providers
Securities and Exchange Board of India Stock Brokers Regulations, 1992: Regulations related to stock brokers.
Madhabi Puri Buch: Chairman of the Securities and Exchange Board of India.
Mumbai, Maharashtra: City in India, where the notification was issued.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-एम.एxxचxG.-IअDE.-x1x0x1 12022-240162
CG-MH-E-10112022-240162
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 553] नई ददल्ली, ब धिार, निम्ब र 9, 2022/कार्ततक 18, 1944
No. 553] NEW DELHI, WEDNESDAY, NOVEMBER 9, 2022/KARTIKA 18, 1944
भारतीय प्रजतभजू त और जिजनमय बोडड
अजधसचू ना
म ंबई, 9 निम् बर, 2022
भारतीय प्रजतभजू त और जिजनमय बोडड
[असपं ररितनड ीय प्रजतभजू तयों (नॉन-कन्िर्टिबल जसक्यरू रिीज़) का जनगमड (इश्य)ू
और इनकी सचू ीबद्धता (जलस्स्ट्िग)] (दसू रा सिं ोधन) जिजनयम, 2022
स.ं सबे ी/एलएडी-एनआरओ/जीएन/2022/102.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोडड अजधजनयम, 1992
(1992 का 15) की धारा 30 की उप-धारा (1) के तहत प्रदान की गई िजियों का प्रयोग करते हुए, एतद्द्वारा भारतीय
प्रजतभूजत और जिजनमय बोड ड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़) का जनगडम (इश्यू) और इनकी
सूचीबद्धता (जलस्स्ट्िग)] जिजनयम, 2021 का और संिोधन करने के जलए जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत:् -
1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोड ड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़)
का जनगडम (इश्यू) और इनकी सूचीबद्धता (जलस्स्ट्िग)] (दसू रा सिं ोधन) जिजनयम, 2022 कहा जा सकेगा ।
2. ये जिजनयम राजपत्र म ेंइनके प्रकािन की तारीख को लाग ूहोंगे ।
3. भारतीय प्रजतभूजत और जिजनमय बोडड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़) का जनगडम (इश्यू)
और इनकी सूचीबद्धता (जलस्स्ट्िग)] जिजनयम, 2021 म,ें अध्याय-VI के बाद और अध्याय-VII स े पहल,े जनम्नजलजखत
7431 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
अध्याय-VIक जोड़ा जाएगा, अथाडत्,-
“अध्याय - VIक
ऑनलाइन बॉण्ड प्लिेफॉम डउपलब्ध करान ेिाल ेव्यजि
ऑनलाइन बॉण्ड प्लिेफॉम डउपलब्ध करान ेिाल ेव्यजियों का रजजस्ट्रीकरण
51क. (1) कोई भी व्यजि ऑनलाइन बॉण्ड प्लेिफॉम डउपलब्ध कराने िाले व्यजि के रूप म ेंतब तक काय डनहीं करेगा, जब
तक दक िह भारतीय प्रजतभूजत और जिजनमय बोडड (स्ट्िॉक दलाल) जिजनयम, 1992 के तहत स्ट्िॉक दलाल के रूप म ेंबोड डस े
रजजस्ट्रीकरण प्रमाणपत्र प्राप्त न कर ले ।
(2) ऐस ेव्यजि को रजजस्ट्िर होने स ेसंबंजधत ितों और ऐसी अन्य अपेक्षाओं का पालन करना होगा, जो बोडड द्वारा समय-
समय पर जनधाडररत की जाए ँ।
(3) इस जिजनयम के उप-जिजनयम (1) एि ं(2) म ेंदी हुई दकसी बात के होते हुए भी, जो व्यजि इस जिजनयम के लागू होन े
की तारीख तक रजजस्ट्रीकरण प्रमाणपत्र के जबना ऑनलाइन बॉण्ड प्लेिफॉम डउपलब्ध करान ेिाले व्यजि के रूप म ेंकाय डकर
रहा हो, िह, इस जिजनयम के लागू होने की तारीख स ेतीन महीनों की अिजध तक या ऐसी अन्य समयािजध तक जो बोड ड
द्वारा जनधाडररत की जाए, रजजस्ट्रीकरण प्रमाणपत्र के जबना कायड करना जारी रख सकेगा, अथिा यदद िह जनधाडररत अिजध
की भीतर रजजस्ट्रीकरण प्रमाणपत्र प्रदान दकए जाने के जलए आिेदन कर च का हो, तो ऐसे आिेदन के संबंध म ेंबोडड द्वारा
कायडिाही पूरी दकए जाने तक रजजस्ट्रीकरण प्रमाणपत्र के जबना काय डकरना जारी रख सकेगा ।
स्ट्पष्टीकरण.- इस अध्याय के प्रयोजनाथड, “ऑनलाइन बॉण्ड प्लेिफॉम डउपलब्ध करान ेिाल ेव्यजि” का अथड ह ै– ऐसा व्यजि
जो ऑनलाइन बॉण्ड प्लेिफॉम डका संचालन कर रहा हो या उपलब्ध करिा रहा हो, और “ऑनलाइन बॉण्ड प्लेिफॉम”ड का
अथ डह ै– मान्यताप्राप्त स्ट्िॉक एक्सचेंज या इलेक्रॉजनक ब क प्रोिाइडर प्लेिफॉम डको छोड़कर ऐसा कोई इलेक्रॉजनक जसस्ट्िम,
जहाँ उन ऋण प्रजतभूजतयों (डैि जसक्यूररिीज़) का प्रस्ट्ताि (ऑफर) दकया जाता ह ैऔर उनम ेंलनेदने (रांजैक्िन) दकया जाता
ह,ै जो सूचीबद्ध हों या जजन्ह ेंसचू ीबद्ध (जलस्ट्ि) कराए जाने का प्रस्ट्ताि हो ।”
माधबी प री ब च, अध्यक्ष
[जिज्ञापन-III/4/असा./376/2022-23]
पाद रिप्पण :
1. भारतीय प्रजतभूजत और जिजनमय बोडड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़) का जनगडम (इश्य)ू
और इनकी सूचीबद्धता (जलस्स्ट्िग)] जिजनयम, 2021, स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/39, 9 अगस्ट्त, 2021
को भारत के राजपत्र म ेंप्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजनमय बोडड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़) का जनगडम (इश्य)ू
और इनकी सूचीबद्धता (जलस्स्ट्िग)] जिजनयम, 2021 तत्पश्चात,् 11 अप्रैल, 2022 को भारतीय प्रजतभूजत और जिजनमय
बोडड [असंपररितडनीय प्रजतभूजतयों (नॉन-कन्िर्टिबल जसक्यूररिीज़) का जनगडम (इश्यू) और इनकी सूचीबद्धता (जलस्स्ट्िग)]
(संिोधन) जिजनयम, 2022, अजधसूचना स.ं सेबी/एलएडी-एनआरओ/जीएन/2022/77, द्वारा संिोजधत हुए थ े।[भाग III—खण् ड 4] भारत का राजपत्र : असाधारण 3
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 9th November, 2022
SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE AND LISTING OF NON-CONVERTIBLE
SECURITIES) (SECOND AMENDMENT) REGULATIONS, 2022
No. SEBI/LAD-NRO/GN/2022/102.—In exercise of the powers conferred under sub-section (1) of section
30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following
regulations to further amend the Securities and Exchange Board of India (Issue and Listing of Non-Convertible
Securities) Regulations, 2021, namely: –
1. These regulations may be called the Securities and Exchange Board of India (Issue and Listing of Non-
Convertible Securities) (Second Amendment) Regulations, 2022.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations,
2021, after Chapter VI and before Chapter VII, the following Chapter VIA shall be inserted, namely –
“CHAPTER VIA
ONLINE BOND PLATFORM PROVIDERS
Registration of online bond platform providers.
51A. (1) No person shall act as an online bond platform provider without a certificate of registration from
the Board as a stock broker under the Securities and Exchange Board of India (Stock Brokers) Regulations,
1992.
(2) Such person shall comply with the conditions of registration and such other requirements as may be
specified by the Board from time to time.
(3) Notwithstanding anything contained in sub-regulations (1) and (2) of this regulation, a person acting as
an online bond platform provider without the certificate of registration on or prior to the date of this
regulation coming into force, may continue to do so for a period of three months from the date of this
regulation coming into force or such other time period as may be specified by the Board, or if it has made
an application for grant of a certificate of registration within the specified period, till the disposal of such
application by the Board.
Explanation. – For the purpose of this Chapter, “online bond platform provider” means any person
operating or providing an online bond platform and “online bond platform” means any electronic system,
other than a recognised stock exchange or an electronic book provider platform, on which the debt
securities which are listed or proposed to be listed, are offered and transacted.”
MADHABI PURI BUCH, Chairman
[ADVT.-III/4/Exty./376/2022-23]
Footnotes:
1. The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities)
Regulations, 2021 were published in the Gazette of India on August 9, 2022 vide No. SEBI/LAD-
NRO/GN/2021/39.
2. The Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities)
Regulations, 2021, were subsequently amended on April 11, 2022 by the Securities and Exchange
Board of India (Issue and Listing of Non-Convertible Securities) (Amendment) Regulations, 2022
vide notification No. SEBI/LAD-NRO/GN/2022/77.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.