Mumbai: Capital markets regulator Securities and Exchanges Board, or Sebi, on Thursday directed Reliance Capital Asset Management, which is part of the Reliance Anil Ambani group to withdraw an advertisement for its newly-launched infrastructure fund on grounds that it spends less time on risk warnings to investors than required.
In a disc submitted by the firm, the display and voiceover time of the warning in the advertisement for Reliance Infrastructure Fund is less than five seconds, the regulator said in a notice posted on its website late on Wednesday. It also said the firm took more than the required seven days of opening of issue to submit the advertisement and served a show cause notice to the firm.
The company has agreed to withdraw the commercial and replace it with a new one beginning Friday.
“We will file our response to Sebi within the prescribed time of 15 days, to establish that there has been no violation of applicable Sebi norms. Meanwhile a revised advertisement will be released starting tomorrow. The Reliance Infrastructure Fund NFO will close on 23 June 2009, as announced,” a spokesperson for Reliance Mutual Fund said.
In a notice late February last year, the Securities and Exchange Board of India (Sebi) had asked fund firms to more than double the time they spent on risk warnings to investors in their radio and television commercials to five seconds.