Investors Warned against Unregistered Online Bond Platforms, SEBI Urges Verification before Transacting
Moneylife Digital Team 19 November 2025
Market regulator Securities and Exchange Board of India (SEBI) has issued a strong caution to the public against dealing with unregistered online bond platform providers (OBPPs), following observations that several entities, including fin-tech firms and stock brokers, are offering OBPP-like services without the mandatory registration required by the regulator.
 
According to SEBI, certain platforms are operating in violation of the guidelines laid down in its circular noSEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2022/154 dated 14 November 2022, which mandates that all OBPPs must obtain registration from recognised stock exchanges. These unregistered platforms operate outside the regulatory framework and, therefore, lack essential safeguards designed to protect investors.
 
SEBI has highlighted that these unregistered platforms do not offer any regulatory or supervisory oversight, nor do they provide formal mechanisms for investor protection or grievance redressal. This exposes investors to significant risks, including possible fraud, mis-selling and lack of accountability in case of disputes or financial losses.
 
The regulator noted that activities conducted by such unregistered entities may violate provisions of the Companies Act, 2013, the SEBI Act, 1992, and various regulations framed under them. In fact, SEBI has previously taken action, issuing an interim order on 18 November 2024, against a few such platforms operating without due authorisation.
 
In light of these risks, SEBI has urged all investors to exercise caution and avoid transacting on any online bond platform that does not hold a valid registration. Before engaging in any transaction, investors should verify the registration status of the OBPP to ensure that they are dealing only with SEBI-registered and compliant entities. This step is crucial for safeguarding their financial interests.
 
For investors’ convenience, SEBI and major stock exchanges provide updated lists of registered OBPPs on their official websites. Registration status can be verified at the following links:
 
SEBI website:
 
NSE website: 
 
SEBI has further cautioned all market participants to strictly comply with the applicable regulatory framework before offering any service that falls under the definition of an online bond platform provider. Non-compliance may attract regulatory action.
 
As the popularity of digital bond-trading channels continues to grow, SEBI’s advisory serves as a timely reminder that regulatory compliance and due diligence remain essential safeguards for investors in India’s evolving debt market.
 
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