Securities and Exchange Board of India has relaxed rules for online bond platforms to widen their product offerings. These platforms can now sell bonds and securities regulated not only by SEBI but also by RBI, IRDAI, IFSCA and PFRDA. The move is aimed at boosting investor access and simplifying compliance in India’s debt market.
SEBI has allowed platforms to offer tax saving 54EC bonds under the Income Tax Act. Clear disclosures must be provided about lock in periods, ceilings, non transferability and tax benefits. Products regulated by IFSCA can also be sold, but they must follow rules applicable to SEBI registered brokers in GIFT IFSC and comply with foreign exchange laws under the Liberalised Remittance Scheme.
Compliance requirements have been eased. Platforms no longer need a company secretary as compliance officer. Instead, they must appoint an officer under SEBI’s stock broker regulations who holds valid NISM certification. IFSC products must be marked as international instruments while tax saving bonds must highlight eligibility and restrictions.
These changes take effect immediately. They are expected to give investors more choice, reduce regulatory burden for platforms, strengthen GIFT City’s role as a global hub and make tax saving bonds more accessible online.
