CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD1/P/CIR/2024/146 October 24, 2024
To,
All Research Analysts
Research Analyst Administration and Supervisory Body (RAASB)
Madam / Sir,
Sub: Clarification with respect to advertisement code for Research Analysts
(RAs)
1. SEBI, vide Circular no. SEBI/HO/MIRSD/MIRSD-PoD-2/P/CIR/2023/51 dated April
5, 2023 and Master Circular for Research Analysts dated May 21, 2024 (hereinafter
mentioned as ‘Master Circular’), specified provisions related to advertisement code
to be followed by a Research Analyst in their advertisements.
2. SEBI is in receipt of certain queries with respect to applicability of provisions of
advertisement code on a Research Report issued by an RA. In this regard, it is
clarified that Research Report and research recommendations of an RA are
not considered advertisement unless anything contained in the research report
is in the nature of promotion of products or services offered by an RA. Accordingly,
the paragraph 8.1 a. ii. of the Master Circular shall read as under:
“The forms of communications, to which the advertisement code shall be
applicable, shall include pamphlets, circulars, brochures, notices or any other
literature, document, information or material published, or designed for use in
any publication or displays (such as newspaper, magazine, sign
boards/hoardings at any location), in any electronic, wired or wireless
communication (such as electronic mail, text messaging, messaging platforms,
social media platforms, radio, telephone, or in any other form over the internet) or
over any other audio-visual form of communication (such as television, tape
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recording, video tape recordings, motion pictures) or in any other manner
whatsoever.
Further, a research report, irrespective of the mode of its dissemination to any
investor or prospective investor, shall be construed as an advertisement if anything
contained in the said research report is either expressly or impliedly in the nature
of promotion of products or services offered by an RA.”
3. This circular is issued in exercise of powers conferred under Section 11(1) of
Chapter IV of the Securities and Exchange Board of India Act, 1992 and Regulation
24(2) of the SEBI (Research Analysts) Regulations, 2014, to protect the interests
of investors in securities and to promote the development of, and to regulate the
securities markets.
4. This circular is available on SEBI website at www.sebi.gov.in under the
category: ‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
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