The Securities and Exchange Board of India (SEBI) has taken action against four online bond platform providers for operating without proper registration. These online platforms were found to be offering unlisted NCDs (non-convertible debentures) to the public without adhering to regulatory norms. 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. This practice, the regulator noted, blurred the line between public and private securities, exposing investors to potential risks.These online platforms include:* AI Growth – owner and operator of altGraaf* Texterity – owner and operator of altGraaf* Purple Petal Invest, which owns Tap Invest* and Berkelium Technologies, which operates Stable InvestmentsSEBI has directed these platforms to cease and desist from offering securities for public subscription and from being offered for sale on their platforms. The regulator emphasized the importance of regulatory oversight in protecting public investments and warned against the unchecked growth of such unauthorized platforms.As of November 18, altGraaf had facilitated the raising of over Rs 4,400 crore, while Tap Invest had raised over Rs 400 crore through their platforms.Founded in 2021, TapInvest has raised $2.3 million from prominent investors like QED Innovation Labs and Snow Leopard Capital. SEBI’s investigation reveals that Tap Invest helped over 100 companies raise approximately Rs 400 crore through unregistered securities.Altgraaf: Operated by AI Growth Pvt Ltd, Altgraaf is a popular platform known for its regulated fixed investment platform, Jiraaf. The startup, backed by investors such as Accel and Harmony Partners, has facilitated the sale of Rs 4,400 crore worth of securities and invoices for 75 companies.
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