AMN
The Securities and Exchange Board of India (SEBI) has taken a firm stance against exaggerated and potentially misleading advertisements by portfolio managers. In a letter dated June 10, addressed to the Association of Portfolio Managers in India (APMI), SEBI directed portfolio managers to immediately take down any promotional material that violates its code of conduct.
SEBI expressed concern over certain registered portfolio managers making unsubstantiated or superlative claims — particularly on websites and public media — about their past performance and investment returns. Such claims, the regulator noted, can mislead both existing and potential investors by creating a distorted impression of superior investment capabilities.
“These practices risk misleading investors by portraying an inflated view of the returns generated,” the letter stated.
SEBI has instructed all concerned entities to promptly remove any such advertisements and marketing communications, reaffirming its commitment to transparency and investor protection.
