The Securities and Exchange Board of India (Sebi) has proposed a significant expansion for online bond platform providers (OBPPs) to include products regulated by the International Financial Services Centres Authority (IFSCA) and specific tax-saving bonds. Currently, OBPPs are limited to securities regulated by domestic entities like Sebi and the Reserve Bank of India. The new framework aims to enhance operational efficiency and provide clarity in investment options, allowing OBPPs to operate within the GIFT International Financial Services Centre (IFSC) similarly to Sebi-registered stockbrokers. Sebi's consultation paper emphasizes the need for compliance with the Foreign Exchange Management Act (FEMA), 1999, and proposes the inclusion of bonds under Section 54EC of the Income Tax Act, 1961, which offers capital gains tax exemptions for government-backed entities. To protect retail investors, Sebi suggests mandatory disclosures on bond features and disclaimers indicating that tax-saving instruments are outside its grievance redressal purview. Additionally, compliance officer requirements for OBPPs will be aligned with those of standard stockbrokers, following feedback from the Institute of Chartered Accountants of India (ICAI). Sebi has invited public feedback on these proposals, with a submission deadline of May 26.