SEBI Bars 3 ‘Unregistered’ Online Platforms From Selling NCDs...

The Securities and Exchange Board of India (SEBI) has barred three online platforms, namely altGraaf, Tap Invest, and Stable Investments, from selling unlisted non-convertible debentures (NCDs) with immediate effect. SEBI found that these platforms were selling unlisted NCDs to retail investors without being registered with the regulator. The market regulator has initiated a detailed probe to examine whether the three “unregistered online” platforms flouted norms by offering such services without a license. SEBI emphasized that allowing such unauthorized platforms to operate unchecked would expose the public to significant risk. Current SEBI rules mandate all online bond platform providers (OBPPs) to be registered as a stock broker in the debt segment of a recognized stock exchange. 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.