Business · India Bureau
Sebi charts framework to boost retail bond market access across India
India's market regulator has unveiled proposals to establish Fixed Income Channel Partners, aiming to democratize bond investments through digital platforms in underserved regions. The initiative seeks to deepen retail participation in fixed-income securities across Tier-II, Tier-III cities and rural areas.
LSN India ·
The Securities and Exchange Board of India (Sebi) has released a consultation paper outlining a framework for Fixed Income Channel Partners (FICPs) that would facilitate broader retail access to bond markets through online bond platform providers.
The proposal permits both individuals and non-individual entities already listed on stock exchanges to operate as FICPs and distribute approved fixed-income securities via digital platforms. Individual applicants must be Indian citizens aged 18 or above with Class 12 education and a valid NISM Series certification in Fixed Income Securities, among other prerequisites.
The framework offers simplified pathways for existing market participants. Mutual fund distributors registered with the Association of Mutual Funds in India (AMFI) can apply for FICP status while bypassing the standard enlistment fee, provided they obtain the required NISM certification.
Sebi's proposal underscores the regulator's commitment to expanding financial inclusion and deepening capital market penetration beyond metropolitan centres. By leveraging digital infrastructure and trusted intermediaries, the initiative aims to bring fixed-income investment opportunities to previously underserved populations, thereby democratizing access to bonds across India's diverse geography.