Ah.. Finally, SEBI has cracked the whip on AMCs, asking them to get in shape their audio-visual ads for mutual funds. Readers know what kind of ads these are; on radio or TV, and said with an extremely hurried tone like someone just pressed the fast forward button.. :-p

These ads are disclaimers meant to explain the risks associated with equity/market related investments, and are to be run / displayed for a minimum of 5 seconds.

Effective May 1, 2010, the warning will now reads as: “Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing”, along with the voice-over.

SEBI also said that to avoid confusing investors, there should not be any addition or deletion of words in this statement.

However, the regulatory body’s warnings have often been treated in a cavaliar fashion before, so let’s see if this one is adhered to.

 

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