 "Market regulator Sebi warns against unregistered online debt platforms")
The Securities and Exchange Board of India (Sebi) has issued a warning to the public about unregistered online platforms that are offering unsecured debt securities to investors.
The regulator has observed that these platforms are not registered with Sebi and lack basic investor protection or any regulatory supervision.
The platforms are offering unsecured debt securities, which are not backed by any collateral and carry higher risk.
Sebi has also stated that these activities are in violation of various regulations, including the Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Sebi (Issue of Options) Regulations, 2005.
Further, Sebi has warned that it may take legal action against such unregistered platforms and their promoters.
The markets watchdog has provided a link to its website where investors can verify the registration status of any platform or intermediary.
It has recommended that investors should only invest in securities offered by registered online platforms that are regulated.
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