Sebi Eases Online Bond Platform Rules, Allows IFSCA Products & Tax-Saving Bonds

New Delhi, Aug 14: Markets watchdog Sebi on Friday eased regulatory framework for online bond platform providers (OBPPs), allowing them to offer products and securities regulated by the International Financial Services Centres Authority (IFSCA), as well as certain tax-saving bonds.

Under the revised framework, OBPPs can offer products or securities regulated by financial sector regulators, including Sebi, RBI, IRDAI, IFSCA and PFRDA.

They can also offer bonds issued under Section 54EC of the Income Tax Act, 1961, or Section 85 of the Income-tax Act, 2025, the regulator said in a circular.

Rules for IFSCA products

For IFSCA-regulated products, OBPPs will have to follow the norms applicable to Sebi-registered stock brokers operating in GIFT-IFSC and comply with applicable foreign exchange regulations, including rules and limits under the Liberalised Remittance Scheme.

Such products will have to be clearly labelled as international or overseas instruments to distinguish them from domestic debt securities.

Guidelines for tax-saving bonds

For 54EC bonds, OBPPs will be required to provide disclosures on features such as eligible issuers, lock-in period, investment limits, non-transferable status and tax benefits.

They will also have to prominently state that such investments are intended for investors seeking tax benefits, subject to applicable eligibility criteria and conditions under the Income-tax Act.

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Changes in compliance norms

Sebi also modified the compliance officer requirement for OBPPs. Instead of mandating the appointment of a company secretary, the entity will now have to appoint a compliance officer in accordance with the Sebi (Stock Brokers) Regulations, 2026.

The compliance officer will also have to meet the prescribed NISM certification requirements.

The changes, aimed at promoting ease of doing business, come into effect immediately, Sebi said.

(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)