As India’s digital financial ecosystem grows rapidly, new investment avenues continue to emerge—particularly in the fixed-income space. However, with innovation comes responsibility and the need for strong regulatory oversight. In a recent cautionary announcement dated 19 November 2025, the Securities and Exchange Board of India (SEBI) has raised an important red flag for investors: the rising presence of unregistered Online Bond Platform Providers (OBPPs).
What Triggered SEBI’s Advisory
SEBI has observed that various fintech firms, stock brokers, and other entities are offering services that resemble those of officially registered Online Bond Platform Providers (OBPPs). However, these platforms have not obtained the mandatory registration from stock exchanges, as required under SEBI Circular dated November 14, 2022.
These platforms—referred to as “unregistered platforms”—operate outside SEBI’s regulatory purview, which poses serious risks for investors.
Why Are Unregistered Platforms Dangerous?
SEBI highlights several concerns:
1. Lack of Regulatory Oversight
Unregistered OBPP-like platforms do not follow the regulatory framework established by SEBI. Without oversight, there is no assurance of fair practices, transparency, or compliance.
2. No Investor Protection Mechanism
Registered platforms must follow investor protection norms, including grievance redressal systems. Unregistered entities offer no such safeguards.
3. Possible Legal Violations
Activities carried out by these platforms may violate:
- The Companies Act, 2013
- The SEBI Act, 1992
- Other SEBI regulations
In fact, SEBI had earlier taken action through an interim order dated November 18, 2024, against some such entities for non-compliance.
What Should Investors Do?
SEBI strongly urges investors to:
✔ Verify Registration Status Before Transacting
Always confirm whether an Online Bond Platform Provider is registered. Transacting on unregistered platforms can expose you to fraud, non-transparent pricing, or loss of funds.
✔ Deal Only with SEBI-Registered OBPPs
Platforms registered with stock exchanges follow strict norms, ensuring transparency and offering grievance redressal mechanisms.
✔ Use Official Links for Verification
Investors can verify the registration status at:
- SEBI website
- NSE website
- BSE website
For Market Participants: Follow the Rules
SEBI also issued a strong reminder to all intermediaries and fintech participants:
Do not offer services resembling an Online Bond Platform unless you are fully compliant with SEBI’s regulatory framework.
Non-compliance can result in regulatory action.
A Timely Reminder for a Safer Digital Investment Ecosystem
As India’s bond market becomes more accessible through digital platforms, ensuring investor safety remains a top priority. SEBI’s advisory serves as a timely reminder that while technology opens new doors, responsibility, due diligence, and regulatory compliance are non-negotiable.
For investors, the message is clear:
Stay informed. Stay cautious. And always transact through SEBI-registered platforms.
By doing so, you safeguard not only your investments but also contribute to building a transparent and trustworthy market ecosystem.
RBI has also added new entities/platforms/websites to the Alert List of unauthorised forex trading platforms. Updated alter list is published for caution of investors.