SEBI strict warning to investors: Only go for online bond platforms operated by NSE and BSE – Times of India

The Securities and Exchange Board of India (SEBI) has issued a stern warning to investors about unregistered online platforms offering unlisted debt securities. The regulator has highlighted the risks associated with such platforms, which operate outside the regulatory framework and lack essential investor protections.
To protect themselves, investors should consider utilizing online bond platforms operated by SEBI-registered stockbrokers authorized by the BSE or NSE. These platforms offer investor protection and grievance redressal mechanisms under SEBI’s jurisdiction.

SEBI Key Concerns:

Lack of Regulatory Oversight: These platforms are not subject to SEBI’s regulatory oversight, which could expose investors to significant risks.
Absence of Investor Protection: Investors who engage with these platforms may not have access to the same level of protection as those who invest through registered intermediaries.
Potential Legal and Regulatory Consequences: The activities of these unregistered platforms and issuers may be in violation of the Companies Act and other relevant regulations, leading to potential legal and regulatory actions.

SEBI’s Advice to Investors

Exercise Caution: Investors are advised to exercise extreme caution when considering investments in unlisted debt securities through unregistered online platforms.
Utilize Registered Platforms: Investors should consider using online bond platforms operated by SEBI-registered stockbrokers authorized by the BSE or NSE.
Report Suspicious Activities: Market participants are encouraged to report any information about unregistered entities or platforms offering unlisted debt securities through SEBI’s market intelligence (MI) portal.
By following these guidelines, investors can protect themselves from potential financial losses and ensure that their investments are made through legitimate and regulated channels.