What exactly is an OBPP license and how does it help investors?

QnA
1

Hello, was looking for other ways to diversify my portfolio apart from equity.
Came across the bond market recently and kept seeing the term OBPP license.
Can someone help me understand what exactly it is and how it impacts us as investors?

2

Great question, Reekshith

OBPP stands for Online Bond Platform Provider, a license introduced by SEBI (Securities and Exchange Board of India) to regulate online bond trading platforms like ours.

Before this framework, many platforms allowed retail investors to buy/sell bonds but without any unified regulation, meaning transparency, compliance, and investor protection weren’t standardized.

With an OBPP license, BondScanner is now a SEBI-regulated platform, which ensures:

  • All bonds listed are verified and sourced through authorized brokers or exchanges.

  • Transparent pricing and real-time settlement through the exchange mechanism.

  • Investor protection through SEBI supervision and grievance redressal.

  • Seamless, compliant transactions for both retail and institutional investors.

In short, this license makes online bond investing as safe and regulated as trading equities, while still offering fixed-income diversification.

3

Oh I see, so does this mean I can directly buy corporate bonds from BondScanner now, like I buy shares from my broker?

4

Yes, exactly.
With the Broker license + OBPP, BondScanner enables you to buy corporate bonds directly, with full exchange settlement and custody through NSDL/CDSL (the same depositories that hold your stocks).

The experience feels similar to equity investing. You can start with small denominations (₹10,000 or ₹1 lakh face value) depending on the bond issue.