Sebi warns public against unregistered platforms offering unlisted debt securities

Markets regulator Sebi on Thursday cautioned traders in opposition to utilizing unregistered on-line platforms providing unlisted debt securities. These platforms function with out regulatory oversight, lack investor safety mechanisms, and don’t present grievance redress methods, Sebi stated in an announcement.

The regulator stated that providing unlisted securities to greater than 200 traders violates the Companies Act, 2013, and Sebi rules, making it a “deemed public difficulty”.

The regulator lately issued an interim order in opposition to some such entities, highlighting the dangers concerned.

Cautioning traders, Sebi requested them to make use of solely registered on-line bond platforms operated by stockbrokers authorised by BSE and NSE to spend money on listed debt securities.

“Sebi is, issuing this warning, advising traders to not have interaction with or undertake funding or buying and selling actions by way of un-registered intermediaries/ net functions/ platforms / apps,” the assertion famous.

The listing of authorised on-line bond platform suppliers (OBPPs) is out there on Sebi’s web site.

Additionally, the regulator warned that disputes arising from transactions on unregistered platforms is not going to be lined below Sebi or alternate grievance mechanisms, together with SCORES and smartodr.in.

The general public is inspired to report unregistered platforms by way of Sebi’s Market Intelligence portal.