Sebi may have found regulatory gap in bond mkt

Online platforms exploit regulatory gaps, blurring the lines between private and public offerings, say experts

- Anshika Kayastha & Neha Joshi

The crackdown against a clutch of online bond platforms is an extension of the market regulator's efforts to protect retail investors as these entities exploited regulatory gaps, experts said. But such practices may be widespread.

The Securities and Exchange Board of India restrained three unregistered online platforms—altGraaf, Tap Invest and Stable Investments—from offering privately placed unlisted non-convertible debentures for public subscription, according to the interim order on 18 November. Sebi cited the violation of norms that treat any issue with over 200 investors as a public issue.