SEBI Seeks Feedback on Proposal to Expand Scope of Online Bond Platforms

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing changes to the regulatory framework for online bond platform providers (OBPPs). 

 The draft outlines revisions to expand the range of products these platforms can offer and bring their operations closer to existing market intermediaries. 

Public comments on the proposals are open until May 26, 2026. 

Access to IFSC-Regulated Instruments 

One of the key proposals is to allow OBPPs to offer debt securities listed overseas but regulated by the International Financial Services Centres Authority (IFSCA).  

These securities are issued within international financial centres, including Gujarat International Finance Tec-City (GIFT City). 

At present, OBPPs are not allowed to distribute such instruments. The proposed change would help them to provide access to these products through their platforms. 

Existing Regulatory Gap 

Under current rules, SEBI-registered stock brokers can operate in international financial services centres after registering with IFSCA. Online bond platforms, however, do not have similar permissions. 

This has created a difference in the range of products that can be offered by brokers and OBPPs. The consultation paper addresses this gap by proposing similar access for bond platforms, subject to regulatory requirements. 

Proposal on Tax-Saving Bonds 

SEBI has also suggested allowing OBPPs to offer tax-saving bonds issued by state-owned companies. These bonds are generally distributed through select channels and are used by investors seeking fixed-income instruments with tax benefits. 

The inclusion of these bonds could increase their availability through digital platforms. 

Broader Policy Context 

The proposals follow a request from IFSCA to align the regulatory approach for OBPPs with that of intermediaries operating in GIFT City.  

Expanding the scope of permitted products is expected to support activity in international financial centres. 

Read More: Auto Sector Faces ₹25,000 Crore Profit Hit on End-of-Life Vehicle Rules! 

Conclusion 

The consultation paper sets out possible changes to widen product access and address differences in regulation across intermediaries. Final decisions will be taken after reviewing feedback from stakeholders. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
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