Sebi proposes tighter curbs on promotional claims by online bond platforms

Sebi has proposed tighter advertising norms for online bond platform providers, including restrictions on promotional claims that could encourage investors to make decisions without adequate due diligence.

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", "predicta