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SEBI has proposed an advertisement code for Online Bond Platform Providers (OBPPs) to expand investor outreach and improve awareness about bonds as an investment avenue.

What is an OBPP?

An OBPP is a SEBI-registered platform that provides a digital interface for investors to discover and transact in bonds. It connects bond issuers—such as companies and government entities—with non-institutional/retail investors, making the bond market more accessible.

Through these platforms, investors can compare bonds on parameters such as credit rating, yield/interest rate, maturity, issuer profile and offer documents, helping them assess risk-return characteristics before investing.

How does an OBPP work?

The investment process broadly integrates discovery → execution → settlement within the regulated securities-market framework:

1. Investor opens a Demat account and completes KYC.
2. Bonds can be searched and compared on the platform.
3. The investor places an order for a listed debt security.
4. The order is routed through the Request for Quote (RFQ) platform of a recognised stock exchange.
5. Following execution, settlement occurs through a recognised clearing corporation.
6. Securities are credited to the investor's Demat account.

Thus, OBPPs provide a transparent and technology-enabled route for accessing the bond market.

Key Features

• Lower entry barrier: Minimum investment can be as low as ?10,000, making bonds accessible beyond large institutional investors.
• Regulatory compliance: OBPPs are required to operate within the SEBI-regulated securities-market framework.
• Easy discovery: Investors can filter bonds according to yield, credit rating and maturity.
• Investor awareness: SEBI's proposed advertisement code seeks to improve communication and prevent misleading promotion of bond products.