The Securities and Exchange Board of India (SEBI) issued a crucial public warning on Wednesday, November 20, 2025, urging investors to steer clear of unregistered Online Bond Platform Providers (OBPPs). The regulator highlighted significant risks associated with these platforms, which operate outside the official regulatory framework.
What Are Online Bond Platform Providers?
Online Bond Platform Providers are digital services that facilitate the buying, selling, and management of fixed-income investment products like bonds for both retail and institutional investors. These platforms have become a popular channel for investors seeking to diversify their portfolios. Currently, the market has 28 OBPPs officially registered with the NSE and 33 registered with the BSE, operating under regulatory supervision.
The Core of SEBI's Warning
SEBI identified that certain entities, including fintech companies and even some stock brokers, are offering services that function as OBPPs without obtaining the mandatory registration from stock exchanges. This is a serious violation of the regulatory framework.
"Such unregistered platforms lack regulatory or supervisory oversight and do not provide for any mechanisms for investor protection or grievance redressal," SEBI stated emphatically. This means investors on these platforms are left vulnerable with no safety net if something goes wrong.
The activities conducted by these unregistered platforms may potentially breach key financial laws, including the Companies Act and the SEBI Act, 1992, exposing both the operators and users to legal consequences.
Protecting Your Investments: Key Steps for Investors
In light of these findings, SEBI has urged all market participants to exercise extreme caution. The board's primary advice is to avoid transacting on any unregistered online bond platforms.
To safeguard their financial interests, investors must take a proactive step: verify the registration status of an OBPP before conducting any transactions. The only safe course of action is to deal exclusively with SEBI-registered entities, which are bound by rules designed to protect investors.
Furthermore, SEBI also cautioned all market participants, including fintech firms and brokers, to ensure full compliance with the applicable regulatory framework before offering any OBPP-like services to the public.
