SEBI has proposed introducing Fixed Income Channel Partners to help investors in smaller cities access online bond platforms, alongside tighter advertising and disclosure norms to curb mis-selling.
| Photo Credit:
HEMANSHI KAMANI
The Securities and Exchange Board of India (SEBI) on Friday proposed introducing a network of Fixed Income Channel Partners (FICPs) to bring online bond investing to smaller cities, and also suggested tighter advertising rules for online bond platforms to curb mis-selling and misleading claims.
The distribution model would be similar to that of mutual fund distributors, wherein FICPs would assist investors with onboarding, documentation, KYC, and transactions, but orders would have to be routed directly through the OBPP platform.
OBPPs would not be allowed to offer FICPs in-kind incentives, such as gift vouchers or electronic gadgets, to achieve sales targets. FICPs would have to ensure that financial incentives do not determine which securities or platforms they recommend. The move comes as the regulator seeks to broaden retail participation in corporate bonds, which remains more concentrated than institutional participation.
Stricter disclosure norms proposed for bond advertisements
The revised OBPP advertisement code would require advertisements for specific securities to disclose the issuer, tenor, credit rating and relevant rating information, whether the security is secured or unsecured, clean and dirty prices, and yield to maturity.
Advertisements would also have to carry a prescribed warning that fixed returns are not guaranteed returns and that debt securities are subject to market, credit and default risks.
Both proposals are open for public consultation until September 11.
Published on August 21, 2026
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