SEBI Clarifies Stance on Research Reports as Advertisements

SEBI has clarified that research reports by research analysts are not considered advertisements unless they promote specific products or services. This clarification addresses queries regarding the applicability of the advertisement code to research reports. Certain communication forms are deemed advertisements if they include promotional content.

The Securities and Exchange Board of India (SEBI) clarified that research reports by analysts are not deemed advertisements unless they contain promotional content. This statement aims to address questions on the advertisement code's applicability to research reports.

SEBI outlined that advertisement codes apply to various communication forms, including pamphlets, brochures, notices, or any literature published across multiple platforms. If a research report promotes products or services, it's considered an advertisement.

The clarification specifies that the mode of dissemination does not exempt research reports from advertisement classification, focusing on the nature of their content rather than their format.

(With inputs from agencies.)