Sebi proposes tighter curbs on promotional claims by online bond platforms

The draft rules outright ban vague adjectives such as "high yield", "high rated", and "high returns", or any ungrounded synonyms. Celebrities remain barred from endorsing bond platform products.

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.

Sebi is tightening the reins on advertising practices for online bond platforms, aiming to protect investors from hasty decisions. New rules mandate that promotional content provides standardized information about specific securities. Terms such as 'fixed returns' must be…