TaxTMI 
TaxTMI 
Advertisements by Mutual Funds
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....ned subject vide Circular No. MFD/CIR/4/51/2000 dated June 05, 2000. With an objective to improve the standard of disclosures in advertisements, effective implementation of regulatory intent and to remove difficulties in the application of Regulations, the following guidelines are being issued after consultation with AMFI, in accordance with Regulation 77 of the SEBI (Mutual Funds) Regulations, ....
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....ents are in legible font. 2. Advertisements through Audio-Visual Media Likewise, in advertisements through audio-visual media like television, a statement "Mutual Fund investments are subject to market risks, read the offer document carefully before investing" shall be displayed on the screen for at least 2 seconds, in a clearly legible font-size covering at least 80% of the total screen space....
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...., it is clarified that it shall also include fund fact sheets, research reports, newsletters, performance reports or summaries, telemarketing scripts, seminar texts, press releases and reprints or excerpts of any other advertisements or published article, etc. 4. Performance Advertisements (i) Disclosure of Benchmarks in Advertisements: The earlier guidelines (Section III, Clause 3.7) prescri....
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....y period. (iii) Impact of Distribution Taxes: While advertising returns by assuming reinvestment of dividends, if distribution taxes are excluded while calculating the returns, this fact may also be disclosed. (iv) Pay-out of Dividend: While advertising pay-out of dividends, it shall be disclosed that after the payment of the dividend, the NAV will fall to the extent of the payout and distri....