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.
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