Quick summary
SEBI seeks comments on modifying the regulatory framework for Online Bond Platform Providers (OBPPs). Proposals include permitting OBPPs to offer IFSCA-regulated products and 54EC/Section 85 tax-saving bonds. It also proposes aligning compliance officer appointment criteria with stock broker regulations to promote ease of doing business.
Who is affected
- Entities operating as Online Bond Platform Providers (OBPPs)
- Recognised Stock Exchanges and Clearing Corporations
- Stock Brokers
What changes
The consultation paper proposes three key modifications to the NCS Master Circular: 1. IFSCA Products: Permit OBPPs to offer products/securities/services regulated by the International Financial Services Centres Authority (IFSCA), subject to FEMA 1999 guidelines and LRS limits. These must be offered in the manner specified for SEBI-registered stock brokers in GIFT-IFSC. 2. Tax-Saving Bonds: Permit OBPPs to offer Bonds issued under Section 54EC of the Income Tax Act, 1961, or Section 85 of the Income-tax Act, 2025. OBPPs must disclose specific features (lock-in, investment limits, etc.) and provide a disclaimer that grievance redressal does not fall under SEBI’s purview. 3. Compliance Officer: Align the appointment criteria for OBPP Compliance Officers with those for stock brokers under SEBI (Stock Brokers) Regulations, 2026, removing the mandatory requirement for a Company Secretary.
Action items
- Submit comments via the SEBI online web-based form by the deadline.
- Review the specific proposals regarding IFSCA products, 54EC bonds, and compliance officer roles.
- Stock Exchanges are directed to take necessary steps for implementation upon finalization.
Key dates-deadlines
- Consultation Paper Issued: May 05, 2026
- Comment Submission Deadline: May 26, 2026
Source reference
SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2025/XXX, May 05, 2026