Fixed‑Income Channel Partners to be registered with exchanges under SEBI plan

The Securities and Exchange Board of India (SEBI) has announced that Fixed‑Income Channel Partners (FICPs) will be required to register with stock exchanges as part of a new distribution framework for corporate bonds and other debt instruments. The move seeks to create a structured channel that can serve retail investors, especially those located in smaller cities and villages.

FICPs will be appointed by Online Bond Platform Providers (OBPP) and will be tasked with educating investors about the nuances of fixed‑income securities, assisting with documentation, and facilitating transactions on regulated platforms. Eligibility criteria include Indian citizenship, a minimum age of 18, completion of 12th grade, and possession of a valid NISM‑Series Fixed‑Income Securities certification, among other requirements.

SEBI highlighted that the corporate bond market has grown from roughly ₹17.5 lakh crore at the close of FY 2014‑15 to over ₹60 lakh crore by July 2026, with listed bonds accounting for about 76.6% of the total market. Despite this expansion, retail participation remains limited, with institutional investors dominating the space.

The regulator also noted a sharp increase in Request‑for‑Quote (RFQ) activity, which rose from 2.76 lakh trades in FY 2024‑25 to 17.84 lakh in FY 2025‑26 – a 546% jump largely attributed to the OBPP channel. However, SEBI acknowledged that investors outside major urban hubs still face accessibility challenges, prompting the introduction of the FICP model to replicate the successful MFD outreach in the fixed‑income arena.