GREX Alternative Investments market has signed an agreement to entrust Orbis Financial Corporation Ltd as the transaction settlement partner for the capital raise transactions that will be done through the platform.
The company has built a seamlessly integrated exchange-like platform and its associated ecosystem of participants, to bring together private eligible investors and high growth unlisted companies for information exchange and securities transactions. This is first of its kind development in the private placement market, even globally.
Speaking on this development, Sanjay Nishank, Director and Co-founder, GREX, said, "Operationalisation of GREX at early stage will ensure that there is arm's length relationship to the logical transaction and the actual management of valuables. GREX always believed in bringing forth the best practices in finance to the benefit of its stakeholders and market participants. We strongly believe that this arrangement will foster more trust and confidence amongst investors as they transact on this platform. We will continue this endeavour to imbibe more such offerings as we go along the way."
As part of the agreement between GREX and Orbis, while GREX is the principal platform for all information and also has seamless transaction features, the money and securities will be handled by Orbis. What this means is that GREX will not handle the investor money and securities itself - it will be deposited in a separate escrow accounts under the Custody and Operation of Orbis.
GREX will simply generate an automated settlement instruction based on the success of investor applications on GREX. Thereafter Orbis will be responsible for final settlement of all such transactions, both funds and securities, based on the automated instructions received.
"Orbis is very happy to partner with GREX in its initiative to make the private placement transactions more seamless and efficient at the same time offering the safety and comfort in the process of settlement. This arrangement helps both Orbis and GREX to focus on their core function and play to our strengths. We will continue to work with GREX to develop and improve mutual processes such that they adhere to the global best standards in finance," said Jayakumar S Babu, Chief Executive Officer, Orbis.
Orbis is a Sebi registered custodian and all the investment funds and securities will remain in the custody of Orbis until a final settlement is reached. This mechanism ensures the much needed arm's length relationship in handling of funds and securities by a regulated responsible entity.
Now, with these delimited functions, GREX will be wholly focused on improving the systems, processes and algorithms that will allow for fairer and transparent transactions. At the same time, Orbis will be entrusted with the handling of money and securities as well as its safekeeping until settlement.