The Securities and Exchange Board of India (SEBI) proposed on Tuesday to allow online bond platforms to offer products regulated by India’s International Financial Services Centres Authority (IFSCA). This initiative aims to expand access to overseas-listed debt and enhance the position of Gujarat’s GIFT City as a global financial hub.
According to SEBI’s consultation paper, online bond platforms would be permitted to trade debt securities listed abroad and regulated by IFSCA. The IFSCA, which oversees international financial centres including GIFT City, had previously requested that SEBI enable online platforms to provide these products, seeking to harmonize their regulatory frameworks with those applicable to stock brokers in GIFT City.
Currently, SEBI-registered brokers can operate within International Financial Services Centres (IFSCs) after obtaining registration with IFSCA, but online bond platforms face restrictions in offering IFSC-regulated products.
Moreover, SEBI has also suggested that online bond platforms be allowed to offer tax-saving bonds issued by state-owned enterprises.
This consultation will remain open for public comments until May 26, 2026.
