Markets regulator SEBI on Wednesday came out with an advertisement code for investment advisers and research analysts, whereby they have been prohibited from issuing statements which may mislead investors. The code also prohibits them from using superlative terms and complex language in their advertisements.

According to the markets watchdog, advertisements by investment advisers and research analysts should not contain superlative terms such as “best, No 1, top adviser/research analyst, leading”. However, factual details of any award received by them can be included. 

The new code, aimed at further strengthening the conduct of advisers and analysts, will come into force from May 1, the SEBI said in a circular. 

Coming out with an exhaustive code, Sebi said that advertisements should not contain statements, which are false, misleading and based on assumptions, any statement designed to exploit the lack of experience and knowledge of investors. 

The advertisements should not also have any promise of assured return to investors, reference of past performances of advisers and analysts as well as use of the SEBI’s logo. 

In addition, the regulator has barred them from “extensive use of technical or legal terminology or complex language and the inclusion of excessive details, which may distract the investors” in the advertisement.