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Informist, Friday, Aug. 21, 2026

 

--SEBI mulls fixed income channel partner framework via online bond platforms

--SEBI issues consultation paper to revise advt code for online bond platform

 

MUMBAI – The Securities and Exchange Board of India Friday floated two consultation papers to change applicable norms for online bond platform providers. One proposed a fixed income channel partner framework to facilitate distribution of fixed income securities, while the other planned to tighten the advertising code.

 

Fixed income channel partners would be individuals or non-individuals enlisted with stock exchanges that can be engaged by online bond platform providers to distribute and facilitate trades in permitted securities, the first consultation paper said. They can apply for enlistment directly or through the platform provider. Stock exchanges will publish the data of these channel partners on their website and share enlistment data with each other. 

 

"MFDs (mutual fund distributors) registered with Association of Mutual Funds of India (AMFI) shall be eligible to apply as a FICP (fixed income channel partner) without paying any applicable enlistment fee, subject to passing of relevant NISM (National Institute of Securities Markets) Certification," the capital markets regulator proposed.  

 

Enlistment of channel partners will remain valid for three years, subject to continued eligibility, and may be renewed on an application made at least 30 days before expiry. Stock exchanges will prescribe nominal enlistment and renewal fees, similar to those currently applicable to mutual fund distributors.

 

Partners will also be required to comply with a common code of conduct specified by recognised stock exchanges. At the time of seeking enlistment, fixed income channel partners will have to provide stock exchanges with details, including their office address, email address, mobile and landline numbers, and the details and PAN of their directors, partners and promoters. The same information will have to be provided to online bond platform providers at the time of appointment and updated promptly whenever required.

 

The proposed advertising norms come amid the rapid growth of online bond platforms and the increasing use of digital advertising, social media and influencer-based promotions, SEBI said. It added that advertisements should not create artificial scarcity or fear of missing out that could push investors into hurried investment decisions.

 

Under the proposed code, advertisements for specific debt securities would have to disclose details such as the issuer, tenor, credit rating and changes in rating, credit risk-o-meter, whether the security is secured or unsecured, clean and dirty prices, and yield to maturity.

 

SEBI has proposed allowing the use of terms such as "fixed returns", "predictable returns" and "passive income", but only with adequate disclaimers and without implying assured or guaranteed returns. All advertisements would also have to carry a standard warning that fixed returns are not guaranteed and that investments in debt securities are subject to market, credit, and default risks.

 

The regulator also proposed a ban on vague claims such as "high yield", "high rated" and "high returns" without a proper basis. It has sought public comments on the proposal by Sep. 11.  End

 

Reported by Kabir Sharma and Aaryan Khanna

Edited by Avishek Dutta

 

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