The Securities and Exchange Board of India has proposed allowing Online Bond Platform Providers, or OBPPs, to offer investment products from Gujarat International Finance Tec-City, India’s international financial hub. These products are regulated by the International Financial Services Centres Authority and include overseas-listed debt securities. The move is aimed at expanding investment opportunities for domestic investors and strengthening GIFT City’s position as a global financial centre.
The proposal follows a request from IFSCA to align regulations, as stock brokers are already permitted to operate in these segments, while OBPPs currently face restrictions.
SEBI has also proposed allowing OBPPs to offer tax-saving bonds under Section 54EC, issued by government-backed entities. These investments will be subject to conditions, including mandatory disclosures, lock-in periods, investment limits, and compliance with foreign exchange regulations. The SEBI is considering easing norms related to compliance officers of OBPPs.
SEBI has invited public comments on the proposals until the 26th of May.
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