SEBI issues urgent warning: Stick to NSE, BSE authorised bond platforms to avoid risky investments

SEBI, the Securities and Exchange Board of India, has issued a stern warning to investors regarding unregistered online platforms offering unlisted debt securities.

These platforms operate outside the regulatory framework, presenting risks for investors. SEBI highlighted the lack of essential investor protections in such cases.

Investors are advised to use online bond platforms run by SEBI-registered stockbrokers authorized by the BSE or NSE. These platforms are under SEBI’s jurisdiction.

Registered platforms provide investor protection and grievance redressal mechanisms, ensuring a safer investment experience.

One of SEBI's main concerns is the lack of regulatory oversight. Unregistered platforms are not monitored by SEBI, which increases potential risks for investors.

Another concern is the absence of investor protection. Those who invest through these unregistered platforms may lack the safeguards available through regulated intermediaries.

SEBI also warned that activities of these unregistered platforms might violate the Companies Act and other regulations, which could lead to legal consequences.

To protect their investments, investors should exercise caution when dealing with unlisted debt securities through unregistered platforms.

SEBI encourages reporting any suspicious activities through its market intelligence portal to help curb illegal activities in the market.