- The Securities and Exchange Board of India (Sebi) has proposed introducing a framework for Fixed Income Channel Partners (FICPs) to broaden retail participation in fixed-income securities through online bond platform providers (OBPPs).
- The proposal is aimed at improving access to fixed-income products in Tier-II and 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 would be eligible to act as FICPs and facilitate the distribution of permitted fixed-income securities through OBPPs.
- Sebi noted that access to the fixed-income market remains concentrated among institutional investors.
- Sebi has invited public comments on the consultation paper by September 11, 2026.
- The outstanding corporate bond market has grown from around ₹17.5 lakh crore at the end of FY15 to more than ₹60 lakh crore as of July 31, 2026, representing a compound annual growth rate (CAGR) of around 12 percent.
- Listed corporate bonds account for around ₹46 lakh crore, or approximately 76.6 percent of the market.
- Debt issuances mobilised ₹9.1 lakh crore in FY26, nearly twice the amount raised through equity.
- The proposed FICP framework is intended to expand distribution and improve retail access, particularly outside major financial centres.
- FICPs would support OBPPs in onboarding clients, assisting with documentation, conducting KYC procedures and facilitating transactions, but would not be permitted to handle client funds or securities.
Sebi's proposal aims to democratize access to fixed-income securities, particularly in underserved regions. The framework allows individuals and entities to act as FICPs, facilitating transactions through online bond platform providers (OBPPs).1
Individuals must be Indian citizens, at least 18 years old, and hold a valid NISM Series: Fixed Income Securities certification.
Notably, mutual fund distributors registered with the Association of Mutual Funds in India (AMFI) can apply for FICP status without an enlistment fee, provided they obtain the necessary certification.
The corporate bond market has seen significant growth, expanding from Rs 17.5 lakh crore in FY15 to over Rs 60 lakh crore by July 31, 2026, with a CAGR of around 12 percent.6
Despite this growth, access remains concentrated among institutional investors. FICPs will assist OBPPs in client onboarding, documentation, and KYC procedures, but cannot handle client funds or charge clients directly.4
The proposed commission for FICPs is capped at 2.5 percent of the investment value. Sebi has invited public comments on the proposal by September 11, 2026.5
An OBPP serves as a digital bridge between bond issuers and retail investors, simplifying the investment process and allowing users to compare bonds based on various criteria.
The minimum investment is set at Rs. 10,000, making it accessible for retail investors. The investment process is designed to be transparent and efficient, aligning with formal market regulations.
“The corporate bond market has grown from about ₹17.5 lakh crore in FY15 to over ₹60 lakh crore as of July 31, 2026, yet access remains concentrated among institutional investors. FICPs would handle onboarding and KYC but cannot touch client funds, with commissions capped at 2.5%.”
Vajiram & Ravi
