Sebi mulls IFSC route for foreign bonds

Markets regulator Sebi is planning to allow online bond platforms to offer debt securities that are regulated by the IFSCA in GIFT City to investors in India. This means if the proposal is approved by the regulator, investors in India will be able to invest in foreign bonds listed on the bourses in the GIFT City in Gandhinagar in Gujarat.

The markets regulator is also planning to allow these bond platforms to offer tax saving bonds issued by REC, PFC, IRFC and other such govt bodies to domestic investors. Sebi has issued a consultation paper on these proposed changes, and suggestions and comments could be sent to the regulator by May 26, it said Tuesday.

Sebi said that IFSCA had requested it to allow online bond platforms to offer overseas-listed debt papers through a regulated framework in the international financial services centre (IFSC). Since these platforms are registered with Sebi as a stock broker in the debt segment of stock exchanges, there was a need to consider allowing them to offer products, securities, and services regulated by IFSCA.
Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.