Quick summary
SEBI has modified the regulatory framework for Online Bond Platform Providers (OBPPs) to promote ease of doing business. Key updates include allowing OBPPs to offer IFSCA-regulated products and specific tax-saving bonds (Section 54EC/Section 85), while updating the compliance officer certification requirements to align with SEBI (Stock Brokers) Regulations, 2026.
Who is affected
- Entities operating as online bond platform providers (OBPPs).
- Recognized Stock Exchanges.
- Stock Brokers.
What changes
- Expanded Product Range: OBPPs are now permitted to offer:
- Products, securities, or services regulated by the International Financial Services Centres Authority (IFSCA).
- Bonds issued under section 54EC of the Income Tax Act, 1961 or Section 85 of Income-tax Act, 2025.
- IFSCA Product Requirements:
- Must be clearly labelled as international or overseas instruments.
- Must be offered in the manner specified for SEBI-registered stock brokers operating within GIFT-IFSC.
- Must comply with Foreign Exchange Management Act (FEMA), 1999, including Overseas Investment Rules and Liberalised Remittance Scheme (LRS) limits.
- Tax Bond Requirements (54EC/Section 85):
- Must include a disclaimer that grievance redressal lies with the issuer, not SEBI.
- Must disclose features: eligible issuers, lock-in period, investment limit, non-transferable status, tax features, application size, and exemption from listing requirements under SEBI (LODR) Regulations, 2015.
- Must prominently disclose that these instruments are for investors seeking associated tax benefits, subject to eligibility criteria.
- Compliance Officer: The requirement to appoint a Company Secretary as a compliance officer is replaced. OBPPs must now appoint a Compliance officer as per SEBI (Stock Brokers) Regulations, 2026, with NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification.
Action items
- For OBPPs:
- Update platforms to offer IFSCA-regulated or tax-specific bonds (via a different tab or separate website).
- Implement mandatory "international" or "overseas" labelling for IFSCA instruments.
- Add required disclaimers and feature disclosures for 54EC and Section 85 bonds.
- Ensure the appointed Compliance officer meets NISM-Series-III-A certification requirements.
- For Stock Exchanges:
- Implement necessary systems for the new framework.
- Amend relevant bye-laws, rules, and regulations.
- Notify stock brokers and disseminate the circular on the exchange website.
Key dates-deadlines
- Effective Date: August 14, 2026 (Immediate effect).
Source reference
HO/17/11/(2)2026-DDHS-POD1/I/18769/2026 (2026-08-14)