Mumbai: The Advertising Standards Council of India (ASCI) has released a comprehensive whitepaper titled “Examining Opinion Trading in India”, drawing attention to the fast-growing sector of opinion trading and calling for urgent regulatory clarity. Amid rising consumer interest and increasing advertising by both local and global players, the whitepaper highlights serious concerns around legality, consumer safety, and misleading marketing claims.
According to data from the National Initiative for Consumer Interest (NICI), opinion trading platforms now boast over 50 million users in India, with transactions reportedly exceeding ₹50,000 crore annually. These platforms allow users to place monetary bets on binary outcomes (yes/no) of real-world events—including sports, politics, and entertainment.
Despite their popularity, the regulatory status of such platforms remains ambiguous. The Securities and Exchange Board of India (SEBI), in an advisory dated April 29, 2025, stated that opinion trading “does not fall within regulatory purview of SEBI, as what is traded is not security.” Meanwhile, courts across the country are examining the legal standing of such services through various public interest litigations.
The ASCI whitepaper outlines key concerns stemming from aggressive advertising practices. It points to numerous ads—particularly on social media—that promote opinion trading platforms as skill-based or knowledge-driven games, when in fact, many of them operate on speculative mechanisms akin to betting.
Manisha Kapoor, CEO & Secretary General of ASCI, stated, “Opinion trading platforms raise serious concerns as their structure and mechanics closely resemble betting in some instances, and can expose consumers to significant financial risk. 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 appropriate steps can be taken to protect consumers from potential harm.”
The whitepaper also explores how similar services are regulated internationally—either as financial instruments or under gambling laws—and suggests India urgently evaluate its position.
ASCI has made a dual appeal: if such platforms are deemed legally permissible, then stringent advertising guidelines should be introduced to ensure responsible promotion. If deemed illegal, it calls for collaborative enforcement mechanisms across stakeholders to prevent consumer exploitation.
The whitepaper underscores the need to protect young and financially vulnerable users who may be particularly susceptible to the risks posed by these platforms and their advertising narratives.
