Archive · 16 Dec 2025
SEBI Plans Fixed Income Framework
The Securities and Exchange Board of India (SEBI) is planning to create rules for companies that sell fixed income products, like bonds.
This is because some companies are selling these products without proper rules, which can be risky for investors.
SEBI wants to make sure that only qualified companies can sell these products and that they follow strict advertising rules.
There will be two types of companies that can sell these products: those that are already regulated, like banks and brokers, and those that pass a special test.
These companies will help people buy bonds through online platforms.
SEBI hopes this will make it safer and easier for regular people to invest in bonds.
SEBI is also reviewing other rules related to mutual funds, stockbrokers, and initial public offerings (IPOs) to make investing easier and safer for everyone.
SEBI is planning to introduce a distribution framework for fixed income products to regulate mis-selling and aggressive advertising.
The framework will include two categories of distributors: regulated entities and certified entities.
Regulated entities include non-banking finance companies, registered investment advisers, research analysts, and stock brokers.
Certified entities will be those that have cleared a certification programme prescribed by SEBI or stock exchanges.
Distributors will facilitate transactions on behalf of online bond platform providers (OBPPs) and must comply with strict advertising norms.
SEBI's board meeting on December 16, 2025, will discuss various proposals, including mutual fund regulations, stockbroker norms, and IPO lock-ins.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Planning to roll out a distribution framework for fixed income products
- When
- December 16, 2025 (meeting date)
- Where
- India
- Why
- To address mis-selling by unregulated players and aggressive advertising, and to grow retail investment in the bond market
- Regulator
- Securities and Exchange Board of India (SEBI)
- Proposed Framework
- Distribution framework for fixed income products
- Categories of Distributors
- Two categories: regulated entities and certified entities
- Regulated Entities
- Non-banking finance companies, registered investment advisers, research analysts, stock brokers
- Certified Entities
- Entities clearing a certification programme prescribed by SEBI or stock exchanges
- Role of Distributors
- Facilitate transactions on behalf of online bond platform providers (OBPPs)
- Fee Structure
- Fee to be mutually decided between OBPPs and distributors
- Advertising Norms
- Strict advertising norms to be complied with by distributors
- Meeting Date
- December 16, 2025