Standard warning in Advertisements by Mutual Funds
Summary
This circular mandates specific formatting and duration requirements for standard warnings in mutual fund audio-visual advertisements. It updates the required warning text to include a reference to reading all scheme-related documents carefully. The directive requires both visual display and voice-over to last at least five seconds without any alterations to the prescribed wording.
Text
The standard warning in audio-visual advertisement shall be displayed as “Mutual Fund investments are subject to market risks, read all scheme related documents carefully”.
No addition or deletion of words shall be made in the standard warning.
Both the visual and the voice over of the standard warning will be run for at least 5 seconds.
All mutual funds shall comply with the above requirements in letter and spirit.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of the SEBI (Mutual Funds) Regulations, 1996.
Source: SecMarx — Standard warning in Advertisements by Mutual Funds. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.