Archive · 18 Jun 2025
Sebi Orders Portfolio Managers to Remove Misleading Advertisements
Imagine some companies manage your money by investing it.
They sometimes make promises about how well they've done in the past to get you to invest.
The government's money-watching team noticed some companies were exaggerating these claims, possibly tricking people into thinking they're super successful.
So, the team told them to stop these misleading ads immediately.
They want everyone to be honest, especially when it comes to handling money.
This is to protect investors and keep everything fair.
Sebi instructed portfolio managers to stop misleading advertising.
The regulator found managers using exaggerated claims about past performance.
Sebi aims to protect investors from false impressions of superior returns.
Portfolio managers must comply with the advertisement code.
Assets under management by portfolio managers totaled around 37.8 trillion.
- Who
- Sebi and Portfolio Managers
- What
- Sebi asked portfolio managers to remove misleading ads.
- When
- The letter was issued on June 10.
- Where
- India
- Why
- To prevent misleading investors and enforce advertising code compliance.
Portfolio Managers
Sebi
Advertising Standards
Portfolio Managers
Potentially overstated past returns and investment capabilities to attract investors.
Sebi
Ensure that all advertisements are factual and in compliance with Sebi regulations.
- Regulator
- Sebi
- Action
- Removal of misleading ads
- Target
- Portfolio Managers
- AUM
- Approximately 37.8 trillion
- Date of Letter
- June 10, 2024