For financial advisers and research analysts, Sebi introduces an advisory code
Sumit Rawat
A new advertisement rule established by the Securities and Exchange Board of India (Sebi) forbids investment advisors and research analysts from assuring investors of certain returns in their communications.
All types of advertising and communication, including pamphlets, research papers, print and television advertisements, mail, and social media platforms, are covered by this.
According to Sebi, the language used in communications should be precise, true, and comprehensive as well as clear and succinct.
The order requests a standard warning that reads, "Investments in securities markets are subject to market risks," in legible fonts with a minimum text size of 10. Before making an investment, thoroughly read all the relevant documentation. No words should be added to or subtracted from the normal warning.
Sebi had requested AMFI to remind organizations to abide by the advertisement rule in March.
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