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In a statement issued on December 5, SEBI said these platforms operate without regulatory oversight, leaving investors vulnerable due to the absence of protection or grievance redress mechanisms.
The watchdog noted that such platforms violate several laws, including the Companies Act, 2013, and SEBI’s regulations on non-convertible securities and market practices. Offering unlisted securities to over 200 investors is considered a “deemed public issue,” requiring compliance with stringent regulations, the circular highlighted.
Also read: SEBI suggests call auction session for stock closing prices, replacing VWAP
SEBI cited its November 18 interim order banning three unregistered online bond platforms —altGraaf, Tap Invest, and Stable Investments—from selling securities, due to significant risks posed to public investors.
Investors have been advised to transact only through SEBI-registered stockbrokers operating authorised online bond platforms approved by the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). Disputes arising from unregulated platforms will lack the legal recourse available for transactions through regulated entities.
Also read: SEBI penalises Optionsmaster, Om Consultancy for unregistered investment services
A list of authorised platforms is available on SEBI’s website: Online Bond Platform Providers.
First Published: Dec 5, 2024 7:58 PM IST
