Clarification with respect to advertisement code for Research Analysts (RAs)
Summary
SEBI clarifies that research reports issued by Research Analysts are generally not considered advertisements unless they promote the analyst's products or services. The Master Circular is amended to explicitly state that any research report containing promotional content constitutes an advertisement subject to the code. This circular is issued under Section 11(1) of the SEBI Act and Regulation 24(2) of the SEBI (Research Analysts) Regulations, 2014.
Text
Research Report and research recommendations of an RA are not considered advertisement unless anything contained in the research report is in the nature of promotion of products or services offered by an RA.
Further, a research report, irrespective of the mode of its dissemination to any investor or prospective investor, shall be construed as an advertisement if anything contained in the said research report is either expressly or impliedly in the nature of promotion of products or services offered by an RA.
This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992 and Regulation 24(2) of the SEBI (Research Analysts) Regulations, 2014.
Source: SecMarx — Clarification with respect to advertisement code for Research Analysts (RAs). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.