The Securities and Exchange Board of India (SEBI) on August 14, 2026, issued a circular regarding modifications in the regulatory framework for Online Bond Platform Providers (OBPPs), including measures for promoting ease of doing business.
The following has been stated: -
•SEBI has modified the regulatory framework for Online Bond Platform Providers (OBPPs) to promote ease of doing business and expand permissible offerings.
•OBPPs may now offer products/services regulated by IFSCA and bonds issued under Section 54EC of the Income Tax Act, 1961 / Section 85 of the Income-tax Act, 2025, subject to applicable conditions.
•IFSCA-regulated products must comply with FEMA requirements, be clearly labelled as international/overseas instruments, and follow specified grievance-redressal arrangements.
•OBPPs offering 54EC bonds must provide prescribed disclosures regarding issuers, lock-in, investment limits, tax benefits and other features, along with a disclaimer on SEBI’s grievance jurisdiction.
•The Compliance Officer requirement is revised to align with the SEBI (Stock Brokers) Regulations, 2026 and NISM-Series-III-A certification requirements; the changes take immediate effect.
[Circular No.: HO/17/11/(2)2026-DDHS-POD1/I/18769/2026]
