Under SEBI's comprehensive Advertisement Code for Research Analysts (RAs) and Investment Advisers (IAs), which of the following promotional practices is strictly PROHIBITED?

[ A ]Displaying the RA's registered name, registered office address, and SEBI registration number in legible fonts.

[ B ]Using superlative claims such as 'Best', 'No. 1', or 'Top Research Analyst', promising or implying assured/risk-free returns, using the SEBI Logo, and displaying uncertified past performance without PaRRVA verification.[ CORRECT ]

[ C ]Including the standard mandatory statutory warning in minimum 10 font size.

[ D ]Disclosing factual, verifiable details of awards received from independent organizations.

Takeaway

Option B is correct: Using superlative claims such as 'Best', 'No. 1', or 'Top Research Analyst', promising or implying assured/risk-free returns, using the SEBI Logo, and displaying uncertified past performance without PaRRVA verification.

Derivation

SEBI's Advertisement Code for RAs/IAs enforces strict anti-misleading promotional standards: (1) Absolute Prohibitions: Promising or implying assured, risk-free, or guaranteed returns/target accuracies; using the official SEBI Logo; and using self-laudatory superlatives like 'Best', 'No. 1', 'Leading Analyst', or 'Top Advisor'. (2) Past performance cannot be advertised unless certified via the Past Risk and Return Verification Agency (PaRRVA). (3) Mandatory Disclosures: Name as registered, registered office address, SEBI registration number, disclaimer that SEBI registration does not guarantee performance, and standard warning ('Investment in securities market is subject to market risks...'). This tests advertising compliance. A common trap is believing superlatives are allowed.

Why the others fail

A — Displaying the RA's registered name, registered office address, and SEBI registration number in legible fonts.

Displaying official registered name, address, and registration number is legally mandatory, not prohibited.

C — Including the standard mandatory statutory warning in minimum 10 font size.

Displaying the standard risk warning in legible font size (minimum 10) is a mandatory compliance requirement.

D — Disclosing factual, verifiable details of awards received from independent organizations.

Factual details of legitimate independent awards are explicitly permitted to be included in promotional materials.