Now Reading: SEBI proposes new advertising code for online bond platforms
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SEBI proposes new advertising code for online bond platforms
Markets regulator SEBI has proposed a new advertising code for online bond platform providers (OBPPs) to tighten rules on how debt securities are promoted. The consultation paper, issued on August 21, 2026,…
Markets regulator SEBI has proposed a new advertising code for online bond platform providers (OBPPs) to tighten rules on how debt securities are promoted. The consultation paper, issued on August 21, 2026, seeks public comments until September 11, 2026. The move targets growing digital advertising and influencer-based promotions that SEBI says can push investors towards hurried decisions.
The proposal requires advertisements to carry disclosures including the issuer's name, credit rating details, the Credit Risk-o-meter, and whether the security is secured or unsecured. It also mandates disclosure of Clean Price, Dirty Price and Yield to Maturity. Promotional terms like 'fixed returns' and 'passive income' are permitted only with adequate risk disclosures and cannot imply assured returns. Vague adjectives such as 'high yield' lack a supporting basis are discouraged.
Indian Opinion Analysis
This extends SEBI's broader crackdown on unregulated financial promotions. In February 2025, it required regulated entities to display registration numbers on social media. In March, it partnered with Google to verify trading apps. The bond platform code fills a gap: unlike mutual funds or equities, debt securities sold through OBPPs have not had platform-specific advertising norms. The real test will be enforcement. SEBI has previously struggled to police dark patterns in online ads, and influencers operating from outside its jurisdiction remain hard to reach. Public comments close on September 11, after which SEBI will finalise the code.
Source: medianama.com
This brief was synthesised by AI from the source linked above.
