đđ§đŻđđŹđđšđ« đđ„đđ«đ: đđĄđšđšđŹđąđ§đ đđĄđ đđąđ đĄđ đđšđ§đ đđ§đŻđđŹđđŠđđ§đ đđ„đđđđšđ«đŠ The Securities and Exchange Board of India (SEBI) on 5th Dec 2024 issued a press release warning investors against transacting on unregulated online bond platforms promoting unlisted securities. Here's why it's essential to prioritize regulated options: đđĄđČ đđŻđšđąđ đđ§đ«đđ đźđ„đđđđ đđ„đđđđšđ«đŠđŹ? Unregulated platforms lack oversight, exposing investors to counterparty risks, no grievance redress mechanisms, and higher chances of defaults. If these platforms shut down, investors are left without recourse. đđĄđ đđąđŹđ€đŹ đšđ đđ§đ„đąđŹđđđ đđšđ§đđŹ Unlisted securities often promise high returns (15-18%), but at significant risk: - đđȘđšđ©đŠđł đđŠđ§đąđ¶đđ” đđȘđŽđŹ: Smaller issuers, minimal scrutiny, and no mandatory disclosures. - đđȘđČđ¶đȘđ„đȘđ”đș & đđłđŠđ„đȘđ” đđȘđŽđŹ: Difficult to exit investments or assess creditworthiness. - đđ° đđąđŻđ„đąđ”đ°đłđș đđąđ”đȘđŻđšđŽ: Many unlisted debentures could turn out to be junk bonds. đđĄđČ đđĄđšđšđŹđ đđđđ-đđđ đźđ„đđđđ đđ„đđđđšđ«đŠđŹ? - đđŻđ·đŠđŽđ”đ°đł đđłđ°đ”đŠđ€đ”đȘđ°đŻ: Grievance redress via SEBIâs SCORES platform. https://lnkd.in/gFG5hfsm - đđ°đ·đŠđłđŻđąđŻđ€đŠ: Mandatory credit ratings, quarterly updates, and adherence to advertising codes. - đđąđ§đŠđ”đș: Funds and securities are processed through SEBIâs RFQ platform and national clearing corporations, ensuring transparency. đđąđ©đŹ đđšđ« đđšđ§đ đđ§đŻđđŹđđąđ§đ : 1. Start small with SEBI-regulated platforms offering listed bonds. 2. Verify platform compliance on SEBIâs website and ensure proper registration via https://lnkd.in/gYw8hgYR 3. Begin with senior secured bonds rated investment-grade by a reputed agency. 4. Review issuer profitability, financial ratios, and bond details (maturity date, YTM, etc.). Make informed decisions and safeguard your investments! Explore trusted SEBI-regulated platforms and take your first step toward secure bond investing.
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