India capital market regulator, the Securities and Exchange Board of India (SEBI), has proposed a new framework aimed at making corporate bonds more accessible to ordinary investors. The proposal, announced on August 21, 2026, seeks to introduce Fixed Income Channel Partners (FICPs) who could help distribute permitted fixed-income securities through online bond platforms.
The proposed model is similar in some ways to the distribution network used for mutual funds. FICPs would be enlisted with recognised stock exchanges and could work with Online Bond Platform Providers to help investors access and transact in corporate bonds. The initiative particularly targets investors outside major metropolitan areas, including Tier-2 and Tier-3 cities.
The move comes as India corporate bond market has expanded significantly. Outstanding corporate bonds crossed ₹60 lakh crore by July 31, 2026, compared with around ₹17.5 lakh crore at the end of FY15. SEBI is also proposing tighter advertising rules for online bond platforms. Advertisements would need to clearly communicate that fixed returns are not the same as guaranteed returns and highlight risks such as credit, market and default risks. Public comments on the proposals have been invited until September 11, 2026. If implemented, the framework could widen access to India corporate bond market while giving investors clearer information about the risks involved.
