SEBI Proposes Overseas Debt Access Through Online Bond Platforms

The Securities and Exchange Board of India (SEBI) has suggested that online bond platforms be allowed to sell debt products that are listed abroad and regulated by the International Financial Services Centres Authority (IFSCA).

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The proposal was released through a consultation paper issued by SEBI on May 5. The market regulator has asked the public to give their thoughts on the proposal until May 26, 2026.

According to the consultation paper, the move is aimed at expanding investment options available through online bond platforms and aligning regulations with the framework applicable to brokers operating in Gujarat International Finance Tec-City (GIFT City).

Proposal Covers IFSC-Regulated Debt Products

SEBI said online bond platforms may be allowed to offer products regulated by IFSCA, including debt securities listed overseas through India’s international financial centres.

At present, SEBI-registered stock brokers can operate in International Financial Services Centres after obtaining registration from IFSCA. However, online bond platforms are currently not permitted to distribute products regulated by the authority.

The proposal follows a request from IFSCA seeking alignment between online bond platforms and stock brokers operating within GIFT City’s financial ecosystem. GIFT City functions as India’s international financial services centre and is regulated by IFSCA.

Tax-Saving Bonds Also Included In Proposal

SEBI has also proposed allowing online bond platforms to distribute tax-saving bonds issued by state-owned companies.

The consultation paper stated that the changes are intended to widen product availability for investors using regulated online bond platforms.

Online bond platforms have witnessed increased investor participation in recent years, particularly in fixed-income products such as corporate bonds, government securities and debt instruments.

Public Feedback Open Till May 26

SEBI has sought comments from market participants, investors and other stakeholders on the proposed framework. The consultation process will remain open until May 26, 2026.

The proposal comes as regulators continue to expand the product ecosystem within GIFT City and increase participation in India’s debt markets through regulated digital investment platforms.