New Delhi: The Securities and Exchange Board of India (SEBI) on Tuesday issued a public caution advising investors to avoid unregistered online bond platforms, warning that several entities are offering bond investment services without the mandatory regulatory approval.

In its release, SEBI said several fintech firms and stockbrokers have been operating as Online Bond Platform Providers without obtaining registration from recognised stock exchanges, which is a requirement laid out in the regulator’s circular issued on November 14, 2022.

The warning comes in the backdrop of recent newspaper advertisements promising unusually high guaranteed returns – promotions which attracted widespread criticism on social media for misleading investors.

SEBI said unregistered platforms function without

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