Athira Sethu
Kochi, 25 Nov 2025
The Securities and Exchange Board of India said Thursday that investors should be very careful about online bond platforms that are not registered. Sebi wants to draw the attention of investors to the fact that such online bond platforms are ‘out of the regulatory ambit’ and hence the’ safeguards provided to the investors’ are not available.
Sebi recently asked investors to check whether the online bond platform they are using is registered with it. Investors should deal only with Sebi-registered platforms so that their investments are safe. The regulator also reminded market participants offering OBPP services to comply with the required legal framework.
This warning comes close on the heels of a number of representations about the services being offered by certain entities, including fintech companies and stockbrokers, without proper registration from the stock exchanges as necessitated under the law. Sebi pointed out that such platforms, which were not registered, operated without any regulatory or supervisory control, thereby enhancing the risk for investors. Besides, they do not provide for mechanisms relating to investor protection or grievance redressal, hence leaving them vulnerable.
Sebi also pointed out that the activities of such unregistered platforms would amount to a violation of various laws, including the Companies Act, 2013, the Sebi Act, 1992, and the rules and regulations framed thereunder. The regulator had previously acted against them, issuing an interim order in November 2024 against certain such entities for non-compliance with the necessary regulations.
Investors are, however, warned to tread with care and ensure that any transactions they undertake are on platforms that are properly registered and regulated to avoid losing their money.
