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SEBI FLOATS CONSULTATION PAPER TO REVAMP ONLINE BOND PLATFORMS

Published on May 05, 2026 14:54

The Securities and Exchange Board of India has issued a consultation paper proposing changes to the regulatory framework for Online Bond Platform Providers (OBPPs).

The paper, released on 5 May 2026 by SEBI�s Department of Debt and Hybrid Securities, focuses on improving ease of doing business and strengthening the retail bond market.

The consultation paper outlines a set of proposals aimed at expanding product offerings and easing compliance requirements.

Among the key proposals, SEBI has suggested allowing OBPPs to offer products, securities or services regulated by the International Financial Services Centres Authority (IFSCA). At present, there is no explicit provision permitting this. The proposal seeks to align OBPPs with SEBI-registered stock brokers operating in GIFT-IFSC.

The regulator has also proposed providing clarity to allow OBPPs to offer tax-saving bonds issued under Section 54EC of the Income Tax Act, 1961, or the corresponding provisions under the Income-tax Act, 2025. Platforms offering such instruments will be required to disclose key features including eligible issuers, lock-in periods, investment limits and non-transferability. They must also display a disclaimer stating that grievance redressal for these instruments will not fall under SEBI and must be addressed by the issuer.

In addition, SEBI has proposed relaxing norms related to the appointment of compliance officers. Currently, OBPPs are required to appoint a qualified Company Secretary. The regulator is considering aligning this requirement with stock broker regulations, following representations from the Institute of Chartered Accountants of India.

The document includes the objective and background, detailed proposals and a draft circular outlining the revised framework.

SEBI has invited public comments on the proposals, with stakeholders required to submit their feedback by 26 May 2026.

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