SEBI Code on Advertisements
April 14, 2023What is SEBI’s Code on Advertisement?
Code of rules and guidelines for investment advisers (IAs) and research analysts (RAs) who offer financial advice or research reports. SEBI aims to protect investors' interests and prevent misleading or fraudulent communication.Forms of Communication Covered by the Code
1. Pamphlets 2. Brochures 3. Circulars 4. Notices 5. Research Reports 6. Newspaper or Television Ads 7. Mail 8. Electronic MessagingContd...
Forms of Communication Covered by the Code
Contd...9. Social Media Platforms 10. Signboards /Hoardings 11. Radio 12. Internet 13. Tape Recording 14. Videotape Recordings 15. Pictures, or 16. Any other manner whatsoever
Disclosures
IAs and RAs must provide the following information and disclosures:1. Name and registration number with SEBI
Disclosures
contd..4. Disciplinary action disclosure by SEBI or other authority
Prohibitions in the Advertisement
The Code prohibits IAs and RAs from using:1. Misleading statements or unrealistic expectations
Prohibitions in the Advertisement
contd..4. Unjustified comparisons of services/products
Other Compliances
1. Keep ad records for at least 5 years.2. Adhere to regulatory obligations and code of conduct in advertisements.
Who are IAs and RAs?
IAsprovide financial advice to clients based on their resources and have a fiduciary duty to act in the clients' best interests. RAs