Sebi warns public against unregistered platforms offering unlisted debt securities

Markets regulator Sebi on Thursday cautioned investors against using unregistered online platforms offering unlisted debt securities. These platforms operate without regulatory oversight, lack investor protection mechanisms, and do not provide grievance redress systems, Sebi said in a statement.

The regulator said that offering unlisted securities to more than 200 investors violates the Companies Act, 2013, and Sebi regulations, making it a "deemed public issue".

The regulator recently issued an interim order against some such entities, highlighting the risks involved.


Cautioning investors, Sebi asked them to use only registered online bond platforms operated by stockbrokers authorised by BSE and NSE to invest in listed debt securities.

"Sebi is, issuing this caution, advising investors to not engage with or undertake investment or trading activities through un-registered intermediaries/ web applications/ platforms / apps," the statement noted.

The list of authorised online bond platform providers (OBPPs) is available on Sebi's website.

Also, the regulator warned that disputes arising from transactions on unregistered platforms will not be covered under Sebi or exchange grievance mechanisms, including SCORES and smartodr.in.

The public is encouraged to report unregistered platforms via Sebi's Market Intelligence portal.