1 week ago
SEBI Proposes Distributor Framework to Expand Retail Corporate Bond Access
SEBI wants more people to be able to invest in corporate bonds.
It has suggested using special helpers called Fixed Income Channel Partners.
These helpers would explain how fixed-income investments work and what risks they have.
They would also help people complete paperwork and use regulated online platforms.
The plan is based on how Mutual Fund Distributors help people invest in mutual funds.
SEBI especially wants to reach investors in smaller cities, towns and rural areas.
The corporate bond market has grown greatly, but institutions still make most of the investments.
Online bond trading has also increased sharply, with RFQ trades rising by about 546 per cent from FY25 to FY26.
SEBI has proposed Fixed Income Channel Partners to widen retail access to corporate bonds and other permitted fixed-income securities.
FICPs would be enlisted with stock exchanges and appointed by Online Bond Platform Providers.
The corporate bond market grew from about Rs 17.5 trillion in FY15 to more than Rs 60 trillion by July 31, 2026.
RFQ trades rose from 2.76 lakh in FY25 to 17.84 lakh in FY26, an increase of about 546 per cent.
Individuals seeking to become FICPs would need to be Indian citizens aged at least 18, have completed Class 12 and hold a valid NISM-Series: Fixed Income Securities certification.
- Who
- The Securities and Exchange Board of India, Online Bond Platform Providers, proposed Fixed Income Channel Partners and retail investors.
- What
- SEBI proposed a distributor-like framework to expand retail access to corporate bonds and other permitted fixed-income securities.
- Where
- The framework is intended to reach investors across India, particularly in Tier II, Tier III and rural locations.
- When
- The proposal cites market data through July 31, 2026, and RFQ activity for FY25 and FY26.
- Why
- Retail participation remains limited despite the growth of the corporate bond market, and investors outside major urban centres remain difficult to reach.
Key facts
- Proposed intermediary
- Fixed Income Channel Partners, or FICPs
- Appointment process
- FICPs would be enlisted with stock exchanges and appointed by Online Bond Platform Providers.
- Corporate bond market
- Outstanding corporate bonds exceeded Rs 60 trillion as of July 31, 2026, up from about Rs 17.5 trillion at the end of FY15.
- Listed bonds
- Listed corporate bonds accounted for around Rs 46 trillion, or 76.6 per cent of the overall market.
- RFQ trade growth
- RFQ trades increased from 2.76 lakh in FY25 to 17.84 lakh in FY26, a rise of around 546 per cent.
- Individual eligibility
- Individuals would need to be Indian citizens aged at least 18, have completed Class 12 and hold a valid NISM-Series: Fixed Income Securities certification, among other requirements.
Sources
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