What happened
SEBI released a consultation paper proposing an advertisement code for online bond providers platform (OBPP). SEBI’s stated purpose is to improve the reach of such communications while also strengthening investor awareness about bonds as an asset class.
SEBI said rising reach and impact of OBPP advertisements makes it necessary to revisit the existing Advertisement Code so that communications remain fair, balanced, and conducive to informed investment decisions.
SEBI also stated that there are about 38 SEBI-registered OBPPs operating on both NSE and BSE.
Background and earlier position
SEBI already has an Advertisement Code that governs how intermediaries and related entities communicate with investors. In the consultation paper, SEBI positions OBPP advertisements as a segment where the existing framework needs to be revisited because digital or platform-based advertising can scale quickly and shape investor perceptions.