ASCI calls for regulatory clarity on opinion trading and its advertising

 

The Advertising Standards Council of India (ASCI) on Tuesday released a white paper on opinion trading or prediction markets and the need for regulatory clarity around the rapidly-growing segment.

 

ASCI added that in some markets, it is regulated as a financial instrument, but in some others, it falls under gambling laws.

 

Opinion trading is where individuals can predict the outcome of future events.

 

Earlier in April 2025, the Securities and Exchange Board of India (Sebi) issued an advisory stating that “opinion trading does not fall within its regulatory purview.”

 

ASCI is seeking legal views on opinion trading to see if such activities and their advertising are permitted. It feels certain advertising guidelines need to be developed to safeguard consumers.

 

 

However, if such activities are not legally permissible, then all stakeholders need to establish mechanisms to monitor any violations of the law, ASCI said in its release.

 

 

“Opinion trading platforms raise serious concerns as their structure and mechanics closely resemble betting in some instances. They can expose consumers to significant financial risk,” said Manisha Kapoor, chief executive officer (CEO) and secretary general, ASCI in a statement.

 

She added, “The advertising that accompanies these platforms often heightens the risk, with exaggerated claims of easy winnings and false assurances of reliability.  No disclaimers cautioning consumers are provided. ASCI’s whitepaper highlights these risks and urges urgent regulatory clarity so that appropriate steps can be taken to protect consumers from potential harm.”

 

According to the National Initiative for Consumer Interest (NICI), these platforms have over 50 million users and transactions exceeding ₹50,000 crore annually. 

 

This comes after ASCI came across advertising from various players, both global and local, as well as influencers on social media that promote opinion trading as knowledge and skill-based games, it added in a statement.

 

The advertising body’s analysis of such posts revealed that some of these appear to be pure speculation.