Sebi directs stock brokers to 'prominently' display their logo

Market regulator Sebi has directed stock brokers to prominently display their logo and contact details on portals, in advertisements and publications, as a measure to eliminate confusion in the market and among investors.

The direction comes in the wake of instances where some stock brokers were found using brand names/logos of their group companies on their portals and other publications, besides in documents and correspondences.

"It has been decided that while a stock broker may use the brand name/logo of its group companies, it must display more prominently...Its name as registered with Sebi, its own logo, if any, its registration number, and its complete address with telephone numbers in its portal/web site, if any, notice/display boards, advertisements, publications, know your client forms, and member client agreements," Sebi said.

Besides, the stock brokers have also been asked to prominently display its name as registered with Sebi, along with logo, complete address with telephone numbers, name of the compliance officer and his contact details, statement of funds and securities and correspondences with the clients.

According to experts, the move is intended to eliminate confusion created among investors and in markets when a broker uses the logo and name of a group company.

Sebi said the decision was taken in consultation with the Investors Associations and major stock exchanges and would come immediately into affect.

It was made under the provisions of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development and regulate the securities market.

"The stock exchanges are directed to bring this to the notice of their members and make necessary amendments to the bye-laws, rules and regulations to implement the above decision," Sebi said.

Stock exchanges will have to include compliance with the latest directive, as part of their inspection and internal audit by stock brokers.
    
"They shall also monitor compliance of this circular by stock brokers and send annually a list of stock brokers, who have not complied with the circular, while sending report on internal audit of the stock brokers," the regulator added.