SEBI bans these four online platforms from distributing bonds and debentures

The Securities and Exchange Board of India (SEBI) has taken action against four online bond platform providers for operating without proper registration. These online platforms were found to be offering unlisted NCDs (non-convertible debentures) to the public without adhering to regulatory norms. SEBI’s investigation revealed that these platforms were circumventing regulations by structuring their offerings to appear as private placements, while in reality, they were selling these securities to a wide range of investors. This practice, the regulator noted, blurred the line between public and private securities, exposing investors to potential risks.