Business
SEBI Proposes Expanding OBPP Access to GIFT City Investment Products
Move aims to widen investor options, align rules with IFSCA and boost GIFT City as a global financial hub
The Securities and Exchange Board of India (SEBI) has proposed allowing Online Bond Platform Providers (OBPPs) to offer investment products from Gujarat International Finance Tec-City (GIFT City), a move aimed at expanding investment opportunities for domestic investors.
These products, regulated by the International Financial Services Centres Authority (IFSCA), include overseas-listed debt securities. The proposal is expected to enhance access to global financial instruments and strengthen GIFT City’s position as an emerging international financial centre.
The move follows a request from IFSCA to align regulatory frameworks, as stock brokers are already permitted to operate in such segments, while OBPPs currently face restrictions.
In addition, SEBI has proposed allowing OBPPs to distribute tax-saving bonds under Section 54EC, typically issued by government-backed entities. These investments would be subject to conditions such as mandatory disclosures, lock-in periods, investment limits, and compliance with foreign exchange regulations.
The regulator is also considering easing norms related to compliance officers of OBPPs to improve operational flexibility. SEBI has invited public comments on the proposals until May 26, indicating a consultative approach before finalising the framework.
