SEBI directs Investment Advisors & Research Analysts to Display their Information in Advertisements

Circular no. SEBI/HO/MIRSD/ MIRSD-PoD-2/P/CIR/2023/52; dated: 06-04-2023

The SEBI observed that some investment advisers and research analysts are using the brand name/trade name/logo more prominently in their advertisements, websites, publications, correspondences with clients and various documents while marketing their services rather than their name as registered with SEBI.

This may mislead and create confusion in the minds of the investors as the brand name/trade name/logo may or may not be related to the name of Investment Advisors (IA)/Research Analysts (RA) as registered with SEBI.

In order to ensure transparency in such usage of brand name/trade name/logo, SEBI has asked Investment Advisers (IAs) and Research Analysts (RAs) to prominently display information such as the name as registered with SEBI, its logo, its registration number, the name, telephone number and e-mail address, of the compliance officer and grievance officer etc.

Additionally, IAs and RAs are required to give a disclaimer in their advertisements that “registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”

These provisions shall be applicable from 01.05.2023.

Click Here To Read The Full Circular