Securities and Exchange Board of India (SEBI) has proposed a new framework to help retail investors in smaller towns and rural areas take part in the corporate bond market. The regulator has suggested creating Fixed Income Channel Partners (FICPs) who will work with online bond platforms to guide investors.
India’s corporate bond market has grown strongly, reaching more than ₹60 lakh crore by July 2026. Despite this growth, most investments are still dominated by large institutions such as banks and insurance companies. Retail participation remains limited even though debt fundraising in FY26 touched ₹9.1 lakh crore, almost double equity fundraising.
Under the proposal, individuals and entities listed with stock exchanges can apply to become FICPs. Applicants must be Indian citizens above 18 years of age, have at least a Class XII qualification, and hold a valid NISM certification in fixed-income securities. Mutual fund distributors registered with AMFI can also join without paying enlistment fees, provided they obtain the certification.
FICPs will assist investors with onboarding, documentation, KYC, and transactions. They will not be allowed to handle client money or securities directly. All orders must go through online bond platforms. Their earnings will come only from these platforms, with commissions capped at 2.5% of the investment value.
SEBI has invited public comments on this proposal until September 11, 2026 before finalising the framework.
