Sebi issues advertisement code for investment advisers, research analysts

The Securities and Exchange Board of India (Sebi) has issued an advertising code for investment advisers and research analysts aimed at stopping potentially misleading statements that exploit investors’ lack of experience and understanding about the market. Advisers and analysts have been banned from using superlative terms and technical or legal jargon in their advertising, and are not allowed to make misleading statements or promises of assured returns. The new rules come into force on 1 May and are designed to further strengthen the conduct of investment advisers and research analysts. Copies of advertisements must be kept for five years.