Sebi Issues Code: SEBI became strict on those who give online advice on the stock market, now arbitrariness will not work, released new code – sebi issues code for ads to rein in finfluencers

Sebi Issues Code: SEBI became strict on those who give online advice on the stock market, now arbitrariness will not work, released new code – sebi issues code for ads to rein in finfluencers

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New Delhi: The Securities and Exchange Board of India (SEBI) has taken a tough stand after a growing number of ‘Finfluencers’ offering online advice on stock markets. SEBI has issued a new advertisement code for Investment Advisors and Research Analysts. This Code applies to all communications issued by or on behalf of advisors and analysts that may influence investment decisions. The Code for Consultants’ advertisements includes traditional communication channels as well as all electronic, wired or wireless communication such as e-mail, messaging platforms, social media platforms, radio, telephone or any other form over the Internet.

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This warning must include

As per this code, advertisements must also include a standard warning stating, “Investment in securities market is subject to market risks. Read all relevant documents carefully before investing.” Further, the advertisement shall not make any promise or guarantee of assured or risk free returns to the investors.

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steps taken because of this

Actually SEBI has taken this strict step to curb misleading advertisements and claims. SEBI has issued this new code to stop these misleading advertisements. Along with this, SEBI has also banned the use of certain words. SEBI has issued a circular regarding this. SEBI has released a list of words that have been banned. These words include many words like number 1, best market leaders. It will be mandatory to follow these codes of SEBI. SEBI has also imposed certain conditions regarding advertisement.

SEBI has also issued these instructions to all registered entities. SEBI has also banned the claim of fake users as evidence in advertisements. Claims based on assumptions and conjectures are also banned.

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