Exchanges Warn Against Unregistered Online Bond Platforms

Leading stock exchanges BSE and NSE caution investors against using unregistered Online Bond Platform Providers amid growing popularity. They stress evaluating bond credit ratings, issuer records, and platform registration with Sebi. Investors should understand platform risks, liquidity, and costs to make informed investment decisions.

Leading stock exchanges BSE and NSE have sounded an alarm for investors, warning them against engaging with unregistered Online Bond Platform Providers (OBPPs). The alert comes as these platforms become increasingly popular, offering easier access to an array of fixed-income instruments.

In a comprehensive bid to protect investors, the exchanges emphasize the importance of vetting several crucial factors before making investments through any online bond platform. These include evaluating the bond's credit rating, the issuer's repayment history, liquidity of the instrument, settlement timelines, and understanding tax implications.

Furthermore, they insist that investors should only use platforms registered with Sebi as OBPPs. The exchanges highlight the necessity for investors to read all disclaimers, thoroughly understand terms and conditions, and ensure their transactions are conducted through regulated and secure systems.

(With inputs from agencies.)