Daijiworld Media Network - New Delhi

New Delhi, Nov 19: The Securities and Exchange Board of India (SEBI) on Tuesday issued a public advisory urging investors to steer clear of unregistered online bond platforms. The regulator warned that several entities are offering bond investment services without the mandatory approval required under SEBI regulations.

According to SEBI, numerous fintech firms and stockbrokers have been operating as Online Bond Platform Providers (OBPPs) without registering with recognised stock exchanges, a requirement set out in SEBI’s circular dated November 14, 2022. The caution comes after recent media advertisements promising unusually high guaranteed returns, which drew widespread criticism on social media for potentially misleading investors.

SEBI highlighted that unregistered platforms operate without regulatory oversight and lack investor protection mechanisms, such as grievance redressal systems. Their activities may also breach provisions of the Companies Act, 2013, and the SEBI Act, 1992. The regulator reminded investors that an interim order was issued on November 18, 2024, against similar entities engaged in unregulated bond sales.

Investors were advised to verify the registration status of any OBPP before investing and to transact only through platforms with official approval, details of which are available on SEBI’s website.

Separately, the Bombay Stock Exchange (BSE) cautioned investors about fake social media accounts using photos of BSE officials to promote misleading wealth advisory services. The exchange stated that such accounts falsely claim to provide investment guidance and warned that investors should not rely on them.

BSE emphasized that while its officials may participate in wealth management in a personal capacity, investors must only engage with registered intermediaries, whose details are available on SEBI and BSE websites, to ensure safe and legitimate investment decisions.