Stock broker advertisements

Stock broker advertisements

Author: sitessaller Date of post: 22.06.2017
stock broker advertisements

Trading Members of the Exchange while issuing advertisements in the media have to comply with the Code for Advertisements prescribed by the Exchange. The Trading Members may apply for approval of advertisement as per the application format. Trading Members not complying with the Code for Advertisements may have to face disciplinary proceedings. The code of Advertisement is as follows: The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

Code of Advertisement Trading Members of the Exchange while issuing advertisements in the media have to comply with the Code for Advertisements prescribed by the Exchange. Information which is accurate, true, fair, clear, complete, unambiguous and concise. Standard warning in legible fonts minimum 10 font size which states 'investment in securities market are subject to market risks, read all the related documents carefully before investing. In audio-visual media based advertisements, the standard warning in visual and accompanying voice over reiteration shall be audible in a clear and understandable manner.

For example, in standard warning both the visual and the voice over reiteration containing 17 words running for at least 5 seconds may be considered as clear and understandable. If there is mentioning of content pertaining to any other business activity such as Mutual Funds, IPO, Insurance, Commodities, Bonds, Fixed Deposits, Loans, etc.

If the advertisement contains prepaid Brokerage schemes, Exchange circular ref. In case anything related to the brokerage rates offered by the member is mentioned in the advertisement, then a disclaimer stating that the "Brokerage will not exceed the SEBI prescribed limit" should be mentioned.

Anything which is otherwise prohibited for publication under the relevant Act, unwarranted, or make any promises. Shall not contain any misleading or deceptive testimonials. Statements which directly or by implication or by omission may mislead the investor.

Any statement designed as likely to be misunderstood or likely to disguise the significance of the statement. Any statement designed to exploit the lack of experience or knowledge of the investors.

Any slogan that is exaggerated or unwarranted or slogan that is inconsistent with or unrelated to the nature and risk and return profile of the product.

Any promise or guarantee of assured return to the general investors.

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Any statement which directly or indirectly discredits other advertisements or Stock Broker or make unfair comparisons. Representations made about the performance or activities of the broker unless accompanied by data regarding performance, disclosures of all the risk factors, etc. Such disclaimer shall be in the same font as the rest of the advertisement. Superlative terms, such as best, no. Recommendations such as BTST buy today and sell tomorrow , ATST acquire today and sell tomorrow etc.

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Statistical information, charts, graphs, etc. In the event of suspension of any Stock Broker by the Exchange, the Stock Broker so suspended shall not issue any advertisement either singly or jointly with any other Stock Broker, during the period of suspension. Copy of the advertisement shall be submitted to the Exchange atleast seven days in advance before its issue.

Further to Exchange circular ref. Related Links Watch the market live! Equities Stock Watch Charts Map of the Market Get real-time market analyses! Verifying your trades Registering a complaint Getting NSE certification Did You Know The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

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