Sebi asks Reliance firms to show cause for violating norm

Reliance Mutual Fund had filed the compact disc with respect to the advertisement clippings being telecast regarding the New Fund Offer of Reliance Infrastructure Fund with the Board only on June 3,2009,even when the NFO opened on May 25,2009. From the submitted CD it is observed that time for display and voice-over of the standard warning in the AV is less than five seconds. The rapid fire manner in which the standard warning is recited in the audio visual renders it unintelligible. This is a serious violation, Sebi said in its order.

Reliance MF and Reliance Capital Asset Management were directed to withdraw the advertisement in its current form. However,a Reliance MF spokesperson said that the company has reacted promptly. The ad has been withdrawn,and a revised advertisement will be released starting Friday. The companies will submit their reply and seek a personal hearing with Sebi in the matter by June 18, the spokesperson said.