SEBI Online Bond Platforms GIFT IFSC: What Changed
SEBI’s August 14, 2026 circular changes the rules for SEBI online bond platforms GIFT IFSC activity by allowing online bond platform providers (OBPPs) to offer IFSCA-regulated products, adding specified tax-saving bonds to the permitted list and replacing the earlier Company Secretary requirement for compliance officers.
The circular is HO/17/11/(2)2026-DDHS-POD1/I/18769/2026, issued on August 14, 2026. It takes effect immediately, from August 14, 2026. The circular modifies provisions of SEBI’s NCS Master Circular dated October 15, 2025; all other provisions remain unchanged.
This follows Newzchain’s earlier coverage of the IFSCA proposal on GIFT City retail access to EU and UAE funds.
What changed for online bond platforms
OBPPs may now offer products, securities or services regulated by IFSCA. IFSCA has been added to the list of financial-sector regulators whose products may be offered on an OBPP platform, alongside SEBI, RBI, IRDAI and PFRDA.
OBPPs may also offer bonds issued under Section 54EC of the Income Tax Act, 1961 or Section 85 of the Income-tax Act, 2025. This is a newly added category under Clause 5.2.6 of the NCS Master Circular.
For IFSCA-regulated products, the OBPP must:
- Offer them in the manner specified for SEBI-registered stock brokers operating within the GIFT-IFSC.
- Comply with applicable FEMA guidelines, including the Overseas Investment Rules and the limits prescribed under the LRS.
- Clearly label the products, securities or services as international or overseas instruments so they are not confused with domestic debt securities.
- Specify the grievance redressal mechanism on its platform.
These products may appear under a different tab on the OBPP’s platform or on another website or platform. They remain subject to the directions and stipulations of the relevant financial-sector regulator.
Who it affects: foreign investors and India–Gulf corridor companies
The change is directly relevant to OBPPs, stock brokers and entities seeking to distribute IFSCA-regulated products through an online platform. It creates a route for international or overseas instruments to be offered through an OBPP, but the circular does not specify investor-level eligibility criteria.
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For foreign investors, the practical issue is product classification and the applicable regulatory route. IFSCA-regulated products must be identified as international or overseas instruments, and the OBPP must follow the relevant FEMA requirements, Overseas Investment Rules and LRS limits.
For companies operating across the India–Gulf corridor, the circular matters where their platform activity involves IFSCA-regulated products or services connected with the GIFT-IFSC. It does not, by itself, specify a separate eligibility route for India–Gulf companies or investors.
What OBPPs must disclose for 54EC and Section 85 bonds
Tax-specific instruments may be offered under a different tab on the OBPP’s platform or on another website or platform. The OBPP must state that these are tax-specific instruments and that grievance redressal lies with the issuer, not SEBI.
The OBPP must disclose the features of 54EC bonds, including Eligible issuers, Lock-in period, Investment limit, Non-transferable status, Tax features, Application size, Exemption from listing requirements under the SEBI (LODR) Regulations, 2015.
It must also prominently disclose that investment is intended for investors seeking the associated tax benefits, subject to the eligibility criteria and other conditions under the applicable Income-tax Act provisions.
Compliance-officer requirement changes immediately
The circular replaces the earlier requirement to appoint a Company Secretary as the OBPP’s compliance officer. The entity must now appoint a Compliance Officer under the SEBI (Stock Brokers) Regulations, 2026.
The Compliance Officer must meet the certification requirements prescribed for stock brokers, including the NISM-Series-III-A: Securities Intermediaries Compliance (Non-Fund) Certification Examination, as prescribed from time to time.
What affected entities should do now
- OBPPs: Map any proposed IFSCA products to the applicable regulator’s directions, FEMA requirements, Overseas Investment Rules and LRS limits.
- Platform and compliance teams: Separate and clearly label IFSCA products as international or overseas instruments, and publish the relevant grievance redressal mechanism.
- Teams offering 54EC or Section 85 bonds: Add the required tax, issuer, lock-in, investment-limit, transferability, application-size and listing disclosures, along with the issuer-based grievance disclaimer.
- OBPP management: Replace the earlier Company Secretary compliance-officer requirement with the new stock-broker-style Compliance Officer requirement and check the applicable certification requirement.
- Investors and India–Gulf companies: Confirm the eligibility and conditions for the specific product before relying on the platform’s availability.
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