Mumbai – The Securities and Exchange Board of India (SEBI) has issued a public advisory against dealing with unregistered Online Bond Platform Providers (OBPPs), citing a lack of regulatory oversight and investor protection mechanisms.
The warning, released Wednesday, November 20, 2025, highlights the risks associated with platforms operating without proper registration, cautioning both retail and institutional investors about the potential for regulatory violations and the absence of avenues for grievance redressal.
OBPPs facilitate the buying, selling, and management of fixed income investment products, including bonds. Currently, 28 OBPPs are registered with the National Stock Exchange (NSE) and 33 with the Bombay Stock Exchange (BSE). However, SEBI has identified entities, including fintech companies and stock brokers, offering OBPP-like services without securing the necessary registration from the stock exchanges.
“Such unregistered platforms lack regulatory or supervisory oversight and do not provide for any mechanisms for investor protection or grievance redressal,” SEBI stated in its advisory. The regulator emphasized that these unregistered platforms may be operating in violation of the Companies Act and the SEBI Act of 1992.
SEBI urged investors to exercise extreme caution and conduct thorough due diligence before engaging with any online bond platform. The regulator advised investors to verify the registration status of OBPPs and transact only with SEBI-registered entities to safeguard their financial interests.
The advisory also extended to market participants, cautioning them to ensure full compliance with the applicable regulatory framework before offering any services resembling those of an OBPP.
The move comes amid growing concerns over the proliferation of unregulated online investment platforms and the potential risks they pose to unsuspecting investors. SEBI’s proactive stance underscores its commitment to maintaining market integrity and protecting investor interests in the rapidly evolving financial landscape.
This warning serves as a critical reminder for investors to prioritize regulatory compliance and exercise vigilance when navigating the online bond market. Failure to do so could expose them to significant financial risks and leave them without recourse in case of disputes or fraudulent activities.
