- SEBI proposes stringent advertising rules for Online Bond Platform Providers to curb misleading marketing
- Consultation document released on August 21, 2026, with feedback due by September 11, 2026
- Restrictions suggested on urgency, fear-based marketing, and misleading promotional claims
In order to stop deceptive financial marketing and mis-selling, the Securities and Exchange Board of India (SEBI) has published a consultation document that suggests a stringent new advertising policy for Online Bond Platform Providers (OBPPs).
The market watchdog released these suggested recommendations on August 21, 2026, and has until September 11, 2026, to receive feedback from the public and stakeholders.
SEBI has suggested stricter advertising guidelines for suppliers of online bond platforms, including limitations on promotional claims that can persuade investors to make choices without conducting sufficient due diligence.
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Sebi has suggested stricter advertising guidelines for suppliers of online bond platforms, including limitations on promotional claims that can persuade investors to make choices without conducting sufficient due diligence.
In order to prevent investors from acting without conducting sufficient due diligence, the SEC has recommended restrictions on marketing that leverage behavioural cues, urgency, and fear-of-missing-out messaging.
OBPPs would have to supply standardised data, such as the issuer, tenor, credit rating, type of instrument, clean and dirty pricing, yield to maturity, and the Credit Risk-o-meter, for advertisements that highlight certain securities.
In order to prevent words like "fixed returns," "predictable returns," and "passive income" from giving the impression that returns are guaranteed, the regulator has now recommended norms restricting their use.
A clear disclaimer saying that fixed returns are not guaranteed and that debt securities are susceptible to market, credit, and default risks would have to be included in advertisements that use the term "fixed returns".
Restrictions on ambiguous promotional statements like "high yield," "high rated," and "high returns" that are not sufficiently supported have also been suggested by the market watchdog.
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A uniform advertisement code that is applicable to certain SEBI-regulated firms would coexist with the proposed code.
Stakeholders are asked to respond to the consultation document by September 11th, according to the Securities and Exchange Board of India (Sebi).
(With PTI inputs)
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