Advertisement code for Investment Advisers (IA) and Research Analysts (RA)
Summary
This circular mandates a specific code of conduct for advertisements issued by Registered Investment Advisers and Research Analysts. It outlines strict requirements for disclosures, including mandatory warnings and registration details, while prohibiting misleading statements and guarantees of returns. Compliance requires prior approval from supervisory bodies and retention of advertisement copies for five years.
Text
Advertisement shall include all forms of communications, issued by or on behalf of IA/RA, that may influence investment decisions of any investor or prospective investor.
The forms of communications... shall include pamphlets, circulars, brochures, notices, research reports... electronic mail, text messaging, social media platforms... television, tape recording...
Name of the IA/RA as registered with SEBI, registered office address, SEBI Registration No., logo/brand name/trade name of IA/RA, and CIN of the IA/RA, if applicable.
Standard warning in legible fonts (minimum 10 font size) which states “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.”.
In audio-visual media based advertisements, the standard warning in visual media based advertisement and accompanying voice over reiteration shall be audible in a clear and understandable manner.
In case the mode of advertisement is SMS/Message/Pop-up, social media etc. and the details... are not mentioned, then official website hyperlink should be provided... and the website must contain all such details.
In case any specific security/securities are displayed in the advertisement as examples, disclaimer that "The securities quoted are for illustration only and are not recommendatory" should be mentioned.
Advertisements and communications/correspondences with clients shall include the disclaimer that “Registration granted by SEBI... in no way guarantee performance of the intermediary or provide any assurance of returns to investors.”
Statements which are false, misleading, biased or deceptive, based on assumptions or projections.
Any promise or guarantee of assured or risk free return to the investors. The advertisement shall not imply any assured returns or minimum returns or target return...
Reference to past performance of the IA/RA.
Advertisements shall not include SEBI Logo.
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Source: SecMarx — Advertisement code for Investment Advisers (IA) and Research Analysts (RA). Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.