SEBI Warns Investors Against Unregistered Online Bond Platforms — Caution to Public to Verify Before Investing

SEBI Warns Investors Against Unregistered Online Bond Platforms — Caution to Public to Verify Before Investing

Securities and Exchange Board of India (SEBI) has issued a strong public caution after finding that several entities, including fintech firms and stock brokers, are offering Online Bond Platform Provider (OBPP) services without mandatory registration from stock exchanges. These platforms are operating outside the regulatory framework despite clear guidelines issued under SEBI’s circular dated November 14, 2022.

According to SEBI, such unregistered online bond platforms operate without supervisory oversight, do not ensure investor protection, and lack grievance redressal mechanisms.

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The regulatory body, SEBI, has also stated that many of these activities may violate the Companies Act, 2013, the SEBI Act, 1992, and related regulations. In November 2024, SEBI had issued an interim order against certain platforms engaged in similar unregulated activities.

The market regulator has urged investors to remain vigilant and refrain from engaging with any bond platform that has not been registered with the respective stock exchanges.

SEBI has advised the public to verify the registration status of Online Bond Platform Providers before making investments and to transact only with SEBI-registered entities to safeguard their financial interests.

To help investors, SEBI has shared official links where the registration status of OBPPs can be checked:

• SEBI website
• NSE website
• BSE website

SEBI has also cautioned all market participants, including fintechs and brokers, to comply strictly with the regulatory framework before offering any bond-related services online. The alert aims to protect retail and institutional investors from potential risks arising from unregulated digital bond platforms, which have rapidly expanded in recent years.

With investor interest in bonds increasing across investment apps and online marketplaces, the latest caution reinforces SEBI’s stance that compliance and investor safety cannot be compromised in pursuit of growth or innovation.