Mumbai, August 15: The Securities and Exchange Board of India (SEBI) has announced an expansion of the product offerings available through online bond platform providers (OBPPs). As of now, these platforms can also introduce securities and investment products regulated by the International Financial Services Centres Authority (IFSCA) located in GIFT City.
This initiative aims to simplify transactions and broaden the range of investment options accessible via online bond platforms.
Under the revised regulatory framework, OBPPs will be able to offer products and securities regulated by various financial sector regulators, including SEBI, the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA), and the IFSCA.
SEBI has also granted approval for certain specified tax-saving bonds issued under Section 54EC of the Income Tax Act, 1961, and Section 85 of the Income Tax Act, 2025, to be offered through these platforms.
The market regulator stated that products, securities, and services regulated by the IFSCA must be presented in accordance with the framework applicable to SEBI-registered stockbrokers operating in GIFT-IFSC.
Additionally, compliance with the Foreign Exchange Management Act (FEMA) regulations is mandatory for these offerings. This includes adherence to rules related to foreign investments and limits set under the Liberalized Remittance Scheme (LRS).
To avoid confusion between domestic and foreign investment products, SEBI has mandated that products regulated by the IFSCA be clearly marked as international or foreign investment instruments on online bond platforms.
Under the new rules, regulated financial products can be displayed on the OBPP’s bond platform through a dedicated section or via any other dedicated website or platform operated by the provider.
The applicable rules from the relevant financial regulators will remain in effect for these products.
Furthermore, online bond platform providers must provide clear information regarding the grievance redressal mechanism applicable to investors for these products. This measure aims to ensure transparency and investor protection.
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