SEBI Proposes Allowing Online Bond Platforms to Offer IFSCA-Regulated Debt & GIFT City Products

Indian markets regulator SEBI on Tuesday proposed allowing online bond platforms to offer products regulated by the country's international financial centres authority, a move aimed at broadening access to overseas-listed debt and bolstering Gujarat's GIFT City as a global finance hub.

Here are some details:

* Securities and Exchange Board of India (SEBI) has proposed in a consultation paper to allow online bond platforms to offer products such as debt securities listed overseas that are regulated by India's International Financial Services Centres Authority (IFSCA).

* IFSCA, the regulator for international financial centres including GIFT City, had asked SEBI to let online bond platforms offer such products, seeking to align their regulatory framework with that applicable to stock brokers operating in GIFT City.

* While SEBI-registered brokers can operate in IFSCs after registering with IFSCA, online bond platforms are currently barred from offering IFSC-regulated products.

* SEBI has also proposed permitting online bond platforms to offer tax-saving bonds issued by state-owned companies.

* The regulator will invite public comments until May 26, 2026. (Reporting by Urvi Dugar in Bengaluru; Editing by Ronojoy Mazumdar)

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