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The Securities and Exchange Board of India has recently made an important proposal. According to this proposal, Online Bond Platform Providers (OBPPs) will now be able to offer investment products of Gujarat International Finance Tec-City.
Indian investors will now be able to enter the international market. They will also be able to invest in debt securities listed abroad through a familiar digital platform.
This change is very important. Now investors will not be stuck with only domestic options. They will find better returns and diversification. Global exposure has become a necessity today, and this proposal paves the way. GIFT City fintech registration is also gaining traction in recent times.
Online Bond Platform Providers, or OBPPs, are platforms where people can easily buy or sell bonds. These are usually online platforms. Until now, OBPPs could only offer products that are under the jurisdiction of domestic regulators. For example:
So, OBPPs have limitations. They cannot offer international or GIFT City products. As a result, investors are deprived of global options. SEBI is now trying to change these limitations.
Gujarat International Finance Tec-City, or GIFT City, is a special financial zone in India. It offers international-level financial services. It is regulated by the International Financial Services Centres Authority.
The key objective of GIFT City is to make India a global financial hub. There are many foreign investment opportunities here.
Why it matters:
So, the GIFT City is now becoming very attractive to investors.
Key Proposal by SEBI
SEBI’s new proposal is given below:
General investors will also be able to participate in international markets. SEBI is taking public comments on this issue, and the last date for comments is May 26, 2026. This proposal is not yet final, but it indicates a major change.
This proposal will greatly increase investment opportunities. Where there were limitations earlier, now they will be reduced. Now investors will be able to enter the international bond market very easily.
The key advantages are:
Although this change may seem small, its impact can be very big. Gradually, it will strengthen the Indian investment market.
Section 54EC bonds are an investment option where you can save long-term capital gains tax by investing. So, if you make a profit by selling a property or asset, you can reduce the tax on that money by investing in these bonds. These bonds are issued by government-backed entities, such as:
According to this proposal, OBPPs will now be able to offer these bonds as well. This will provide investors with an easy tax-saving option, and the entire process can be done online.
This proposal can greatly increase the participation of ordinary retail investors. The opportunities that were only available to big or experienced investors are now easily available to small investors. This will make the market more inclusive.
Small investors will also now get the opportunity to invest in global markets. Earlier, this access was difficult to get. Now, it will become much easier with OBPPs.
Gujarat International Finance Tec-City (GIFT City) will be stronger. It can gradually become a global finance hub.
The entire investing process will be much easier due to the use of digital platforms. It will also take less time.
Transparency will increase as all the information is online. This can lead to new growth in the bond market. The business of OBPPs will also increase, which will strengthen the entire ecosystem.
Enterslice helps companies work within these new rules. Sometimes compliance issues can be a bit complicated, so expert support is needed.
Our Services:
We make the entire process easy. You will get step-by-step guidance. Our team helps companies to work easily according to the new rules. So, contact Enterslice today for hassle-free compliance.
This proposal is very important for the investment market in India. The SEBI is creating new opportunities for investors with this proposal. Now they can easily invest in global products.
This will not only improve OBPP’s platforms but also benefit investors. The entire bond market can be bigger and stronger. Overall, this change will make India’s financial system more modern.
Online Bond Platform Providers, or OBPPs, are online platforms where people can easily invest in bonds. Earlier, buying bonds was a bit of a hassle, but now everything has become digital on these platforms due to SEBI regulations. Here, users can view different types of bonds, compare them, and then invest. The entire process is quite simple and easily understood by new investors.
SEBI has given a new proposal, where OBPPs will be given more opportunities. According to this proposal, they will now be able to offer products of Gujarat International Finance Tec-City (GIFT City). Investors will also be able to enter the global market. This facility was not there earlier. This change increases investment options and makes the entire system more modern.
Gujarat International Finance Tec-City (GIFT City) is a special financial zone in India. International financial services are provided here. It is regulated by the International Financial Services Centres Authority (IFSCA). GIFT City is very important because global investment products are available here. India is also moving forward as a global finance hub.
IFSCA-regulated investment products are investment options regulated by the International Financial Services Centres Authority (IFSCA). These may include bonds or debt securities listed abroad. These products are linked to the global market. So, investors get international opportunities. However, you need to understand the rules and regulations well before investing in them.
Yes, according to this new proposal, retail investors will also be able to invest in overseas bonds. This opportunity will be provided through the OBPPs platform. Earlier, it was not easy to make such investments. Now everything can be done on a digital platform. However, some rules must be followed, such as the foreign investment limit. If you invest with a little care, you can also get good returns.
Section 54EC bonds are bonds where long-term capital gains tax can be reduced if you invest. If you have sold a property, then you can save tax by investing in these bonds. These are usually issued by government-backed organizations, such as Power Finance Corporation or Indian Railways Finance Corporation. These bonds have a lock-in period, so the money is locked for some time.
In this new proposal, OBPPs will have to follow some important compliance rules. They will have to follow the Foreign Exchange Management Act, 1999 (FEMA) and overseas investment rules. In addition, all investment details will have to be clearly shown. Such as risk, lock-in period, and limit. This will help investors make a good decision. Regulators want the entire process to be safe and transparent.
FEMA and LRS are very important in this type of investment. The Foreign Exchange Management Act, 1999 (FEMA) sets out the rules for sending money abroad. LRS stands for Liberalised Remittance Scheme, where an individual can invest a certain amount of money abroad in a year. Failure to follow these two rules can lead to problems in investment. So, it is important to follow them properly.
This proposal will bring many benefits to Indian investors. They will now be able to invest in the global market. This will diversify their portfolio. It will be easier to reduce risk. In addition, new options will be available. Since everything is on a digital platform, the process will also be easier. Investing will become smarter and more flexible.
Companies need to prepare for these new rules in advance. They need to update their compliance systems. They need to understand FEMA, LRS, and other regulations properly. It is better to take expert help. This will reduce mistakes. You will have to get used to the new system. It will take some time, but you will have good opportunities in the future.
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