SEBI Proposes Bond Distributor Network To Boost Retail Participation
· Business · LiveMint, Economic Times
The Securities and Exchange Board of India (SEBI) has proposed a new framework for fixed-income channel partners (FICPs) to expand online bond investing beyond major urban centres. Under the proposal, FICPs will assist retail investors with onboarding, documentation, and transactions, with orders routed directly through online bond platform providers (OBPPs). To ensure quality, individual FICPs must be Indian citizens, at least 18 years old, and hold NISM certification. The regulator also intends to implement stricter advertising rules for OBPPs to prevent misleading claims and mis-selling. Additionally, the proposal prohibits OBPPs from offering in-kind incentives, such as gadgets or vouchers, to FICPs to drive sales.
Why it matters
This move aims to democratise access to corporate bonds for retail investors across India. By formalising the distribution network and tightening oversight, SEBI seeks to reduce mis-selling risks and increase participation in fixed-income markets.
Read the original report — LiveMint
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