2 weeks ago
SEBI Eases Online Bond Platform Rules, Allows IFSCA Tax Bonds
In India, a group called SEBI looks after the stock market and keeps investors safe.
SEBI has changed the rules for websites that sell bonds online.
Bonds are like loans you give to a company or the government, and they pay you back with a little extra money.
Now these websites can sell more kinds of bonds, including ones from an international finance hub called IFSCA in GIFT City.
They can also sell tax-saving bonds that help people pay less tax.
International bonds must be clearly labelled so buyers know they come from overseas.
Websites must tell customers about details like how long the money is locked in.
They must also be clear about who to complain to if something goes wrong, and for tax-saving bonds, complaints go to the bond issuer instead of SEBI.
Each online bond platform must hire a certified compliance officer.
These new rules started right away to make it easier to do business.
Sebi eased the regulatory framework for online bond platform providers (OBPPs), with the changes effective immediately.
OBPPs may now offer products and securities regulated by Sebi, the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), IFSCA and PFRDA.
IFSCA-regulated products must be clearly labelled as international or overseas instruments and must follow GIFT-IFSC broker norms, FEMA and Liberalised Remittance Scheme limits.
Tax-saving bonds issued under Section 54EC of the Income-tax Act, 1961 and Section 85 of the Income-tax Act, 2025 are now permitted, with disclosures on features such as lock-in period and tax benefits; complaints on these bonds go to the issuer, not SEBI.
OBPPs must appoint a NISM-certified compliance officer under the Sebi (Stock Brokers) Regulations, 2026, replacing the earlier company secretary requirement, and must specify grievance redressal mechanisms for investors.
- Who
- Securities and Exchange Board of India (Sebi), the markets regulator, and the online bond platform providers (OBPPs) affected by the new rules.
- What
- Sebi widened the regulatory framework for OBPPs, allowing them to offer products regulated by Sebi, RBI, IRDAI, IFSCA and PFRDA, including IFSCA-linked instruments and tax-saving bonds, with new labelling, disclosure, grievance and compliance requirements.
- Where
- India; IFSCA products are tied to GIFT City (GIFT-IFSC), and the announcements were reported from New Delhi and Mumbai.
- When
- Friday, August 14, with the revised provisions coming into effect immediately.
- Why
- To promote ease of doing business and widen the investment options available through online bond platforms, following feedback from market participants.
Key facts
- Regulator
- Securities and Exchange Board of India (Sebi)
- Affected entities
- Online Bond Platform Providers (OBPPs)
- Permitted regulators
- Sebi, RBI, IRDAI, IFSCA, PFRDA
- Tax-saving bonds
- Section 54EC of Income-tax Act, 1961; Section 85 of Income-tax Act, 2025
- IFSCA products
- Must be labelled international/overseas; follow GIFT-IFSC broker norms and FEMA/LRS limits
- Compliance change
- NISM-certified compliance officer under Sebi (Stock Brokers) Regulations, 2026, replacing company secretary
- Grievance redressal
- OBPPs must specify applicable mechanism; 54EC bond complaints go to the issuer, not Sebi
- Effective date
- Immediately; aimed at ease of doing business
Sources
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