Sebi Proposes Tighter Advertising Rules for Online Bond Platforms
· Business · Moneycontrol
The Securities and Exchange Board of India has proposed stricter advertising guidelines for online bond platforms to protect retail investors. The regulator seeks to curb the use of marketing tactics that create a fear of missing out, commonly known as FOMO. Platforms will be prohibited from advertising fixed returns on debt securities, a practice the regulator deems misleading for potential buyers. These proposed norms aim to ensure transparency and prevent the mis-selling of financial products. The move follows a rise in digital platforms offering easy access to corporate bonds and other debt instruments.
Why it matters
The new rules will force online bond platforms to change their marketing strategies, ensuring retail investors are not misled by promises of guaranteed returns or high-pressure sales tactics.
Read the original report — Moneycontrol
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