SEBI/IMD/CIR No. 12/ 118340 /08

February 26, 2008

All Mutual Funds Registered with SEBI Association of Mutual Funds in India (AMFI)

Dear Sirs,

Sub: Standard warning in Advertisements by Mutual Funds

Please refer to clause 2 of the circular SEBI/MFD/CIR No.6/ 12357/03 dated June 26, 2003 for Advertisements through Audio-Visual media.

The rapid fire manner in which the standard warning “Mutual Fund investments are subject to market risks, read the offer document carefully before investing” is recited in the audio visual and audio media renders it unintelligible to the viewer / listener.

In order to improve the manner in which the said message is conveyed to the investors it has been decided in consultation with AMFI that with effect from April 1, 2008:

the time for display and voice over of the standard warning be enhanced to five seconds in audio visual advertisements.
in case of audio advertisements the standard warning shall be read in an easily understandable manner over a period of five seconds.
All other conditions specified in the above mentioned circular remain unchanged.

All mutual funds shall comply with the above requirements in letter and spirit.

These guidelines are 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 SEBI (Mutual Funds) Regulations, 1996.

Yours faithfully,

Ruchi Chojer

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