Sebi proposes channel partners to expand retail access to bonds in India

Market regulator Sebi has proposed introducing a framework for Fixed Income Channel Partners to broaden retail participation in fixed-income securities through online bond platform providers (OBPPs). The proposal aims to improve access to fixed-income products in Tier-II, Tier-III cities and rural areas, according to a consultation paper issued by Sebi on Friday. Under the proposed framework, individuals and non-individual entities listed on stock exchanges could act as Fixed Income Channel Partners (FICPs) and facilitate the distribution of permitted fixed-income securities through OBPPs. Individuals would need to be Indian citizens, be at least 18 years of age, have passed Class 12, and hold a valid NISM Series: Fixed Income Securities certification, among other requirements. Mutual fund distributors registered with AMFI would also be eligible to apply for FICP status without paying the applicable enlistment fee, subject to passing the relevant NISM certification. Sebi said ...