Mumbai, Aug. 21 -- The Securities and Exchange Board of India (Sebi) has proposed a new network of fixed-income distributors to take online bond investing beyond big cities, alongside tighter advertising rules for online bond platforms to curb mis-selling and misleading claims.

In a consultation paper issued on Friday, the market regulator has proposed a framework for fixed-income channel partners (FICPs), who would help investors access fixed-income securities through online bond platform providers (OBPPs). The move comes as the regulator seeks to widen retail participation in corporate bonds, which remains concentrated relative to institutional participation.

The model draws on the experience of mutual fund distributors, who have help...