On 21 August, the Securities and Exchange Board of India (SEBI) proposed a revised Advertisement Code for Online Bond Platform Providers (OBPPs), seeking to standardise disclosures and regulate promotional practices to ensure that advertisements enable investors to make fair, balanced and informed investment decisions.
In a consultation paper, SEBI noted that the online bond platform ecosystem has witnessed significant growth in investor participation, while advertisements by OBPPs have increasingly moved to social media, online advertising and influencer-based promotions. It said the growing reach of such advertisements warranted a review of the existing Advertisement Code.
The regulator has raised concerns over the use of behavioural prompts, urgency-based messaging and other promotional techniques that could create artificial scarcity or fear of missing out and encourage investors to make hasty investment decisions.
Under the proposed revised code, advertisements for debt securities would have to carry standardised disclosures, including details of the issuer, tenor, credit rating, nature of the security, Clean Price, Dirty Price and Yield to Maturity. SEBI said these disclosures would help investors better understand the securities being advertised and make informed investment decisions.
The proposed code would also regulate the use of terms such as “fixed returns”, “predictable returns” and “passive income”. OBPPs would have to comply with specified conditions and provide disclaimers to ensure that such terms do not convey an impression of assured or guaranteed returns.
Advertisements would also be required to carry a standard warning stating:
“Investments in debt securities, municipal debt securities/ securitised debt instruments are subject to risks including delay and/ or default in payment. Read all other offer related documents carefully”
The paper has also proposed to replace the existing Advertisement Code applicable to OBPPs with the revised code. The revised code would operate in addition to the Common Advertisement Code applicable to specified SEBI-regulated entities.
SEBI has invited comments and suggestions from stakeholders on whether the proposed revised Advertisement Code is adequate and appropriate till 11 September 2026.