The rapid fire announcement that comes at the end of a mutual fund advertisement will now be more ear friendly.
Capital market regulator Securities and Exchange Board of India (Sebi) has directed all fund houses to read the standard warning in the audio and audio visual advertisements in an easily understandable manner and has asked them to stretch it upto five seconds instead of the current rapid fire manner. The regulator has taken this decision after consulting Association of Mutual Funds in India (Amfi). In a circular, Sebi said that this decision will be effective from April 1, 2008. The rapid manner in which the standard warning ?Mutual Fund investments are subject to market risk, read the offer document carefully before investing? is stated in the audio visual and audio media makes it incomprehensible to the viewer or listener.
In order to improve the message, Sebi said that the time for display and voice over to the standard warning be enhanced to five seconds in audio visual advertisements. Moreover, it should be read in an easily understandable manner over five seconds. Sebi’s decision has come in the wake of economic advisory council to Prime Minister C Rangarajan’s statement. Rangarajan had, at a function in Mumbai, said, ?Information is a major concern. Take the case of advertisements for mutual funds that are expected to carry statutory warnings regarding risks?.
