SEBI proposes banning celebrity and Sportsmen promotion of crypto investments
SEBI proposes banning celebrity and Sportsmen promotion of crypto investments under the Securities Contracts (Regulation) Act 1956 or SCRA
The Securities and Exchange Board of India (SEBI) has banned prominent public figures including celebrities, Sportsmen, etc. endorsing crypto products in any kind of advertisement Based on the premise that cryptos are unregulated entities, the Sebi informed a parliamentary panel that any prominent public figure must be held responsible for making endorsements which result in case of a possible violation of the Consumer Protection Act or any other law.
The regulatory body for the securities and commodity market in India said that terms like 'securities', 'derivatives', "commodity derivatives", "stock exchange", "clearing corporation", 'custodian' and 'depositories' Should not be used in the advertisement of crypto products or crypto exchanges.
Sebi making its stand clear on cryptos said, "Since crypto products are unregulated endorsement or any advertised message verbal statement demonstration or depiction of the name, signature, likeness, or other identifiable personal characteristics of an individual or depiction of the name or seal of any institution or organization which makes the consumer believe that it reflects the opinion, finding or experience of the person making such endorsement.
Member MPS of the parliamentary committee asked the Sebi to raise its response on what the board controlled by the Ministry of Finance was doing about Cryptocurrencies, as the Reserve Bank of India (RBI) on record has been dismissive about Cryptocurrency.
Sebi flagged the need for a suitable notification for clarity. it stated: Tokenisation of an asset and running it on a decentralized platform is still linked to the underlying asset it represents. The extant laws applicable to the underlying asset may apply to the tokenized asset too Under these circumstances it is not clear which crypto assets cryptocurrencies can be legally defined as securities.