Mumbai, Aug 14 (IANS) The Securities and Exchange Board of India (SEBI) on Friday expanded the scope of products that can be offered by online bond platform providers (OBPPs), allowing them to provide securities and investment products regulated by the International Financial Services Centres Authority (IFSCA) in GIFT City.
The move is aimed at easing business operations and widening investment options available through online bond platforms.
Under the revised regulatory framework, OBPPs will now be permitted to offer products and securities regulated by various financial sector regulators, including SEBI, the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), the Pension Fund Regulatory and Development Authority (PFRDA), and IFSCA.
Sebi has also approved the offering of specified tax-saving bonds issued under Section 54EC of the Income-tax Act, 1961, and Section 85 of the Income-tax Act, 2025, through these platforms.
The market regulator said products, securities and services regulated by IFSCA must be offered in accordance with the framework applicable to Sebi-registered stock brokers operating in GIFT-IFSC.
Such offerings will also need to comply with Foreign Exchange Management Act (FEMA) regulations, including overseas investment rules and limits prescribed under the Liberalised Remittance Scheme (LRS).
To avoid confusion between domestic and overseas investment products, SEBI has mandated that IFSCA-regulated offerings be clearly labelled as international or overseas instruments on online bond platforms.
The revised rules further allow regulated financial products to be displayed either through a separate section on an OBPP’s bond platform or via another dedicated website or platform operated by the provider.
These products will continue to be governed by the regulations of their respective financial regulators.
Additionally, online bond platform providers will be required to clearly specify the grievance redressal mechanism applicable to investors for such products, ensuring transparency and investor protection.
–IANS
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