Sebi proposes new framework for fixed-income channel partners

Sebi has proposed a framework for Fixed Income Channel Partners to expand retail participation in fixed-income securities through online bond platforms. The proposal seeks to improve access in smaller cities and rural areas while setting eligibility, remuneration and fee norms

New Delhi: Market regulator Sebi has proposed introducing a framework for Fixed Income Channel Partners to broaden retail participation in fixed-income securities through online bond platform providers (OBPPs).

The proposal aims to improve access to fixed-income products in Tier-II, Tier-III cities and rural areas, according to a consultation paper issued by Sebi on Friday.

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Under the proposed framework, individuals and non-individual entities listed on stock exchanges could act as Fixed Income Channel Partners (FICPs) and facilitate the distribution of permitted fixed-income securities through OBPPs.

Individuals would need to be Indian citizens, be at least 18 years of age, have passed Class 12 and hold a valid NISM Series: Fixed Income Securities certification, among other requirements.

Mutual fund distributors registered with AMFI would also be eligible to apply for FICP status without paying the applicable enlistment fee, subject to passing the relevant NISM certification.

Sebi said outstanding corporate bonds have grown from about Rs 17.5 lakh crore at the end of FY15 to over Rs 60 lakh crore as of July 31, 2026, reflecting a compound annual growth rate (CAGR) of around 12 per cent.

Listed corporate bonds account for about Rs 46 lakh crore, amounting to approximately 76.6 per cent of the market.

Debt issuances mobilised Rs 9.1 lakh crore in FY26, nearly twice the amount raised through equity; however, access remains concentrated among institutional investors.

The regulator noted that FICPs will provide support to the OBPP in onboarding clients, assisting them in completing the documentation, conducting KYC procedures and facilitating transactions.

However, FICPs will not handle client funds or securities and will not receive or pay any money or securities of clients in their own name or account.

Client orders will be routed and reported directly through the OBPP platform, Sebi said.

FICPs will receive remuneration for their services only from the appointing OBPP, and they shall not levy or collect any amount from clients.

The proposed commission, fee or brokerage charged to clients would be capped at 2.5 per cent of the investment value.

The Securities and Exchange Board of India (Sebi) has invited public comments from stakeholders on the consultation paper by September 11, 2026.