Sebi proposes tighter curbs on promotional claims by online bond platforms

The proposed revised advertisement code seeks to address the growing use of digital advertising, social media and influencer-led promotions by online bond platforms, according to a consultation paper issued by the regulator on Friday.

The regulator has proposed restrictions on advertisements that use urgency, behavioural prompts, and fear-of-missing-out messaging, which may encourage investors to act without adequate due diligence.

For advertisements featuring specific securities, OBPPs would be required to provide standardised information, including the issuer, tenor, credit rating, nature of the security, clean and dirty prices, yield to maturity and the Credit Risk-o-meter.

The regulator has also proposed guidelines governing the use of terms such as "fixed returns", "predictable returns" and "passive income" to ensure such descriptions do not create an impression of assured returns.

The Securities and Exchange Board of India (Sebi) has invited comments from stakeholders on the consultation paper by September 11.

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