SEBI proposes advertisement code for online bond platforms
SEBI has proposed a new advertisement code for online bond platforms to improve investor awareness and prevent misleading marketing. The draft rules include a ban on celebrity endorsements and requirements for clear disclaimers.
Why it matters
Regulatory oversight of fintech platforms is crucial to protecting retail investors from high-risk financial products and manipulative advertising.
The Securities and Exchange Board of India (SEBI) has proposed an advertisement code for online bond providers platform (OBPP) to boost reach and on account of need for investor awareness about this asset class, according to a consultation paper released August 21.
“The increasing reach and impact of such advertisements necessitate a review of the extant Advertisement Code to ensure that communications remain fair, balanced and conducive to informed investment decisions,” the regulator said in the paper.
There are about 38 SEBI registered OBPPs with National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) each, which include popular brokerage applications such as Groww, AngelOne and bond only platforms like GRIP Invest.
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