Investment Advisers & Research Analysts Restricted from Using SEBI Logo
Moneylife Digital Team 06 April 2023
While restricting investment advisers (IAs) and research analysts (RAs) from using its logo, market regulator Securities and Exchange Board of India (SEBI) asked them to also prominently display contact details, registration number, information about compliance officer and a disclaimer. "SEBI logo shall not be used by IA or RA," the market regulator says, adding that these changes will be effected from 1 May 2023.
 
In a circular, SEBI says, "It is observed that few investment advisers and research analysts are using the brand name, trade name or logo more prominently in their advertisements, websites, publications, correspondences with clients and various documents while marketing their services rather than their name as registered with SEBI. The brand name, trade name and logo may or may not be related to the name of IA or RA as registered with SEBI and hence may mislead and create confusion in the minds of the investors."
 
While using brand name, trade name and logo, SEBI asked IAs and RAs to prominently display on portal or website, if any, notice boards, display boards, advertisements, publications, know-your-client (KYC) forms and client agreements, name of the IA or RA as registered with SEBI, its logo, its registration number and its complete address with telephone numbers.
 
"The information such as the name of the IA or RA as registered with SEBI, its logo, its registration number, its complete address with telephone numbers, the name of the compliance officer, his telephone number and e-mail address, the name, telephone number and e-mail address of the grievance officer or the grievance redressal cell shall be displayed prominently in statements or reports or any other form of correspondence with the client," it says.
 
Further, IAs and RAs are mandated to put out a disclaimer stating that "Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors" on the portal or web site, if any, notice board, display boards, advertisements, publications, KYC forms, client agreements, statements or reports or any other form of correspondence with the client.
Comments
Kamal Garg
1 year ago
All LIC agents use LIC logo in their various communications to their clients/prospective clients with blatant disregard to legal issues involved in it, besides duping/frauding the clients to believe that the communication is with the authorization from LIC.
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