SEBI plans dedicated bond distributor category to pull retail into India's debt market
SEBI is designing a bond distributor framework modelled on the 340,000-strong MF distributor network to deepen retail participation in debt, even as debt funds (₹19.31 tn AUM) lag equity (₹35.8 tn) partly due to slab-rate taxation versus equity's 12.5% LTCG.
What happened
SEBI plans a dedicated bond distributor category, mirroring mutual fund distribution, to boost retail debt participation. Official flagged tax disadvantage of
Key facts
- AUM ₹91 trillion (Mar 2026)
- Debt funds ₹19.31 trillion (Apr)
- Equity MF ₹35.8 trillion
- CAGR >19% (decade)
- 54% assets via regular plans
- 340,000 MF distributors
- Debt tax at slab rate
- Equity STCG 20%, LTCG 12.5%
Why this matters
Scout acquisition or partnership targets among bond platforms and fintech distributors likely to be first licensees under SEBI's new category.