SEBI Modifies OBPP Framework, Eases Compliance And Expands Permitted Offerings

The Securities and Exchange Board of India (SEBI) on 14 August modified the regulatory framework for Online Bond Platform Providers (OBPPs) to promote ease of doing business. It said the changes address suggestions received from stakeholders and amend provisions of its Master Circular dated 15 October 2025 concerning OBPPs.

Under the revised framework, OBPPs can offer products, securities and services regulated by the International Financial Services Centres Authority (IFSCA), as well as bonds issued under Section 54EC of the Income Tax Act, 1961 and Section 85 of the Income-tax Act, 2025.

For IFSCA-regulated offerings, OBPPs must comply with the requirements applicable to stock brokers in Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC) and the applicable guidelines under the Foreign Exchange Management Act. These include the Overseas Investment Rules and limits under the Liberalised Remittance Scheme. OBPPs must also clearly label such offerings as international or overseas instruments to distinguish them from domestic debt securities.

For bonds issued under Section 54EC of the Income Tax Act, 1961 or Section 85 of the Income-tax Act, 2025, OBPPs must state that grievance redressal lies with the issuer and not SEBI. They must also disclose details including eligible issuers, the lock-in period, investment limits, tax benefits and the non-transferable nature of the bonds.

OBPPs must further state that these instruments are intended for investors seeking the associated tax benefits, subject to the eligibility criteria and other conditions prescribed under the Income-tax Act.

SEBI has also modified the compliance officer requirement for OBPPs. An OBPP must appoint a Compliance Officer in accordance with the SEBI (Stock Brokers) Regulations, 2026. The Compliance Officer must comply with the prescribed NISM-Series-III-A certification requirements applicable to stock brokers.

The circular takes immediate effect.