India’s markets regulator proposes a new class of fixed-income distributors to broaden retail investor participation and support the rapidly growing corporate bond market, especially in smaller cities and rural areas.
India’s markets regulator has proposed a new class of fixed-income distributors in an effort to make bonds and other debt products easier for ordinary investors to buy, especially in smaller cities and rural areas.
The Securities and Exchange Board of India said in a consultation paper on Friday that it wants to create Fixed Income Channel Partners, or FICPs, who would work alongside online bond platform providers to help distribute permitted fixed-income securities. The regulator said the structure is intended to widen retail participation in a market that has so far been dominated by institutions.
SEBI said the proposal would allow individuals and non-individual entities listed on stock exchanges to register as FICPs, subject to eligibility rules and certification requirements. Individuals would need to be Indian citizens, at least 18 years old, educated to Class 12 level and holders of the relevant NISM fixed-income securities qualification. Mutual fund distributors registered with the Association of Mutual Funds in India would also be able to apply without paying the enlistment fee if they pass the necessary certification.
According to the consultation paper, FICPs would help with client onboarding, paperwork, know-your-customer checks and transaction support, but they would not hold client money or securities. Orders would flow through the online bond platform provider, while any commission, fee or brokerage charged to investors would be capped at 2.5% of the investment value. SEBI said the partners would be paid only by the appointing platform and could not collect money directly from clients.
The proposal comes as India’s corporate bond market has expanded sharply. SEBI said outstanding corporate bonds have risen from about Rs 17.5 lakh crore at the end of financial year 2015 to more than Rs 60 lakh crore as of July 31, 2026, with listed corporate bonds making up about 76.6% of the total. The regulator also said debt issuances raised Rs 9.1 lakh crore in financial year 2026, almost twice the amount raised through equity, even though access remains concentrated among institutional investors. Public comments are open until September 11, 2026.
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