All SEBI registered IAs and RAs are required to follow this rule. This circular will take effect on May 1, 2023.
There is confusion among investors because some Investment Advisers and Research Analysts are using brand names, trade names, and logos in their advertisements, websites, publications, correspondences with clients, and other marketing materials instead of using their registered names with SEBI.
For example, Mr. Ajay Goyal is a Research Analyst with the registered name “Ajay Goyal” and registration number INH00000000, but all his marketing materials have the brand name “Mr. Todolist Winner”.
This creates a lot of miscommunication, so the following requirements are being implemented as a standard process.
SEBI Requirements in this circular to ensure transparency:
(I) All information about the IA/RA registered with SEBI, including its logo, registration number, and complete address with telephone number, should be displayed on the portal/website, notice board, display boards, advertisements, publications, know your client forms, and client agreements.
(II) All information about the IA/RA registered with SEBI, including its logo, registration number, and complete address with telephone number, should be displayed on the email address, and the name, telephone number, and email address of the grievance officer or the grievance redressal cell should be prominently displayed in statements, reports, or any other form of correspondence with the client.
(III) A disclaimer that reads, “Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors” should be mentioned on the portal/website.
(IV) The SEBI logo should NOT be used by IA/RA.”
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