SEBI Warns Investors Against Unregistered Online Bond Platforms

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  • Last Updated on 21 November, 2025

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unregistered online bond platforms

PR No.75/2025, Dated 19.11.2025

1. Background

The Securities and Exchange Board of India (SEBI) has cautioned investors about the operations of certain fintech platforms and brokers offering bond investment services as Online Bond Platform Providers (OBPPs) without obtaining mandatory SEBI registration.

Such unauthorised platforms pose significant risks to investor protection and market integrity.

2. Regulatory Concern

SEBI has noted that these unregistered OBPPs:

  • Operate outside the regulatory framework,
  • Offer services without oversight,
  • Do not comply with the provisions of the Companies Act, 2013,
  • May be in violation of SEBI regulations, and
  • Lack essential investor protection mechanisms, including grievance redressal systems.

Their activities can mislead investors into purchasing bonds without the safeguards applicable to regulated intermediaries.

3. Risks to Investors

Investing through unregistered platforms exposes investors to:

  • High counterparty and operational risk,
  • Possibility of mis-selling or opaque pricing,
  • No recourse in cases of default, fraud, or dispute, and
  • Lack of transparency and compliance typically ensured by SEBI-regulated entities.

4. Investor Advisory

SEBI has strongly advised investors to:

  • Avoid transacting on unregistered or unauthorised online bond platforms,
  • Verify OBPP registration status on the official websites of SEBI, NSE, or BSE, and
  • Prefer dealing only with SEBI-registered OBPPs or other regulated intermediaries.

5. Significance

The advisory aims to:

  • Protect investors from unregulated bond distribution channels,
  • Ensure adherence to market regulations, and
  • Promote a transparent and compliant bond market ecosystem.
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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied