New Delhi, Nov 19 (NationPress) The Securities and Exchange Board of India (SEBI) has issued a public alert urging investors to steer clear of unregistered online bond platforms. The warning highlights that numerous entities are providing bond investment services without the essential regulatory approval.

In its announcement, SEBI noted that various fintech companies and stockbrokers are acting as Online Bond Platform Providers without the necessary registration from recognized stock exchanges, a requirement established in the regulator's circular dated November 14, 2022.

This caution comes in light of recent newspaper ads that guarantee unusually high returns, which have faced significant backlash on social media for deceiving investors.

SEBI pointed out that these unregistered platforms operate without regulatory oversight and lack formal mechanisms for investor protection, including grievance resolution. Their activities may contravene the Companies Act, 2013 and the SEBI Act, 1992.

The market regulator also reminded investors of an interim order issued on November 18, 2024, against similar entities involved in selling unregulated bonds.

Advising investors to exercise caution, SEBI encouraged them to verify the registration status of any OBPP before engaging in transactions and to only utilize platforms that have obtained official approval. Information regarding registration can be found on their official website.

Previously, the Bombay Stock Exchange (BSE) warned investors about fraudsters using images of BSE officials to create fake social media accounts to disseminate misleading wealth advice.

"It has come to our attention that images of senior BSE officials are being misused to generate counterfeit social media accounts that claim to offer wealth advisory services to mislead unsuspecting investors," stated the stock exchange.

Investors must not fall prey to such deceitful representations, even though BSE officials can initiate or support any wealth management or advisory services.

"Investors are urged to verify the source of communication before making any investment decisions and not to trust any stock or share recommendations from fake social media profiles," the exchange emphasized.

Additionally, BSE recommended that investors engage only with registered intermediaries, whose list is accessible on both the SEBI and BSE websites.