SEBI has issued an warning about unregistered Online Bond Platform Providers (OBPPs) that are offering corporate bond investments without proper approval. Investors are advised to use only SEBI-registered platforms for safety.
Why This Warning?
Earlier, investors needed at least Rs 10 lakh to invest in corporate bonds. Today, this requirement has dropped to Rs 10,000, leading to a sharp increase in retail participation.
However, many new websites and apps are now offering bond investments without being registered with SEBI or stock exchanges. These unregistered platforms may appear legitimate but are not authorised to sell bonds.
Key Concerns Raised by SEBI
- No regulation: Unregistered platforms do not follow SEBI rules.
- No investor protection: They offer no grievance redressal or safety mechanisms.
- Possible legal violations: Activities may breach the Companies Act, 2013 and SEBI Act, 1992.
What Investors Should Do
To stay safe, SEBI advises:
- Verify registration of the online bond platform.
- Avoid unregistered websites or apps even if they look professional.
- Invest only through SEBI-registered OBPPs to protect your money.
How to Check If a Bond Platform Is Registered
You can verify the status of an Online Bond Platform Provider here:
- SEBI: https://www.sebi.gov.in/online-bond-platform-providers.html
- NSE: https://www.nseindia.com/trade/members-compliance
- BSE: https://www.bseindia.com/downloads1/OBP_MEMBER_LIST.zip
Why Avoid Unregistered Platforms?
- No regulatory supervision
- No transparency in pricing or risk
- High chances of mis-selling
- No refund or complaint system
- Risk of platform shutdown without notice
Benefits of Using SEBI-Registered Platforms
- Secure and transparent transactions
- Verified bond issuers
- Mandatory compliance
- Investor grievance support
Frequently Asked Questions
1. Is it safe to buy bonds online?
Yes, but only if you use SEBI-registered online bond platforms.
2. How do I know if a platform is genuine?
Check its name on the SEBI, NSE or BSE registration lists.
3. Are unregistered platforms legal?
No. Selling bonds without proper registration may violate SEBI rules.
4. What if I already invested on an unregistered platform?
Stop transactions immediately and report the platform to SEBI.
Final Takeaway
The bond market is growing fast in India, but so are risks. SEBI’s warning is clear: always verify before investing. Choose only registered Online Bond Platform Providers to protect your money and avoid fraudulent portals.
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