NEW DELHI, India — The Securities and Exchange Board of India (SEBI) on Tuesday issued a public advisory urging investors to avoid unregistered online bond platforms, warning that several entities are offering bond investment services without the mandatory regulatory approval.
SEBI said multiple fintech firms and stockbrokers have been operating as Online Bond Platform Providers (OBPPs) without securing registration from recognized stock exchanges, a requirement established under the regulator’s circular dated November 14, 2022.
The caution follows a wave of newspaper advertisements promising unusually high and guaranteed returns. Many of these promotions drew sharp criticism on social media for misleading investors and pushing unregulated products.
According to SEBI, unregistered bond platforms operate without regulatory supervision and lack key investor protection mechanisms such as grievance redressal systems. Their activities may also violate provisions of the Companies Act, 2013, and the SEBI Act, 1992.
The regulator reminded investors that it had issued an interim order on November 18, 2024, against other entities involved in the sale of unregulated bonds. SEBI advised investors to verify the registration status of any platform offering bond investments and to transact only through OBPPs that have received official approval. Registration details are available on SEBI’s website.
The Bombay Stock Exchange (BSE) also recently sounded an alarm about miscreants creating fake social media profiles using photographs of senior BSE officials. These accounts were found offering fraudulent wealth advisory services in an effort to mislead investors.
“It has come to attention that photos of senior BSE officials are being used to create fake social media IDs,” the exchange said. “The IDs claim to provide wealth advisory solutions to mislead gullible investors.”
BSE urged investors not to rely on any stock or investment recommendations from such fake handles and to verify sources before acting on any advice. The exchange emphasized that investors should only engage with registered intermediaries, with lists available on SEBI and BSE websites. (Source: IANS)
