Display logo clearly, Sebi directs stock brokers

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.

Eliminate confusion

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.