Securities And Exchange Board Of India - Subsection
Section 60(7) in Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
(7)Any advertisement or research report issued or caused to be issued by an issuer, any intermediary concerned with the issue or their associates shall comply with the following:(a)it shall be truthful, fair and shall not be manipulative or deceptive or distorted and it shall not contain any statement, promise or for cast which is untrue or misleading;(b)if it reproduce or purports to reproduce any information contained in an offer document, it shall reproduce such information in full and disclose all relevant facts and not be restricted to select extracts relating to that information;(c)it shall be set forth in a clear, concise and understandable language;(d)it shall not include any issue slogans or brand names for the issue except the normal commercial name of the issuer or commercial brand names of its products already in use;(e)if it presents any financial data, data for the past three years shall also be included alongwith particulars relating to sales, gross profit, share capital, reserves earnings per share, dividends and the book values;(f)no advertisement shall use extensive technical, legal terminology or complex language and excessive details which may distract the investor;(g)no issue advertisement shall contain statements which promise or guarantee rapid increase in profits;(h)no issue advertisement shall display models, celebrities, fictional characters, landmarks or caricatures or the likes;(i)no issue advertisement shall appear in the form of crawlers (the advertisements which run simultaneously with the programme in a narrow strip at the bottom of the television screen) on television;(j)in any issue advertisement on television screen, the risk factors shall not be scrolled on the television screen and the advertisement shall advise the viewers to refer to the red herring prospectus or other offer document for details;(k)no issue advertisement shall contain slogans, expletives or non-factual and unsubstantiated titles;(l)if an advertisement or research report contains highlights, it shall also contain risk factors with equal importance in all respects including print size of not less that point seven size;(m)an issue advertisement displayed on a billboard shall not contain information other than that specified in Parts A, B and C of Schedule XIII, as applicable;(n)an issue advertisement which contains highlights or information other than the details contained in the format as specified in Parts A and B of Schedule XIII shall contain risk factors.
