Schedule - 07 - Advertisement Code - Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999

SEVENTH SCHEDULE SECURITIES AND EXCHANGE BOARD OF INDIA (COLLECTIVE INVESTMENT SCHEME) REGULATIONS, 1999 [Regulation 27(1)] ADVERTISEMENT CODE (1) A 1 [collective investment scheme] advertisement shall: a. be truthful, fair and clear and shall not contain any statement which is untrue or misleading, b. be set forth in a clear, concise and understandable language. Extensive use of technical, legal terminology or complex language and the inclusion of excessive details which may detract the investor, shall be avoided, c. not contain statements which promise or guarantee an appreciation of rapid profits, d. not contain any information or language that is not contained in the offer document, e. not include any slogans or brand names except the normal commercial name of the 2 [collective investment scheme]s, f. not have slogans, expletives or non-factual and unsubstantiated titles, g. contain risk factors giving equal importance in all respects including the print size. The print size of highlights and risk factors in issue advertisements shall not be less than point 9 size. It shall mention the names of 3 [collective investment scheme]s, Collective Investment Management Company, trustee, address of their registered office and Registrars to the Issue, h. contain Risk Factors in respect of the concerned issue : Provided that an offer opening/closing advertisement which does not contain the highlights need not contain risk factors. (2) A 4 [collective investment scheme] advertisement shall be considered to be misleading, if it contains- i. statements made about the performance or activities of the 5 [collective investment scheme]s in the absence of necessary explanatory or qualifying statements, which may give an exaggerated picture of the performance or activities, than what it really is. ii. an inaccurate portrayal of past performance or its portrayal in a manner which implies that past gains or income will be repeated in the future. (3) Any advertisement reproducing or purporting to reproduce any information contained in an offer document shall reproduce such information in full and disclose all relevant facts and not be restricted to select extracts relating to that item. (4) No models, celebrities, fictional characters, landmarks or caricatures or the likes shall be displayed on or form part of the offer documents or advertisements of the 6 [collective investment scheme]. (5) No corporate advertisement of the Collective Investment Management Company shall be issued after 21 days of the filing of the offer document with the Board till the closure of the 7 [collective investment scheme] unless the risk factors as are required to be mentioned in the offer document, are mentioned in such advertisement. (6) No advertisement shall be issued stating that the 8 [collective investment scheme] has been fully subscribed or oversubscribed during the period the 9 [collective investment scheme] is open for subscription, except to the effect that the issue is open or closed. No announcement regarding closure of the issue shall be made except on the last closing date. If the 10 [collective investment scheme] is fully subscribed before the last closing date as stated in the offer document, the announcement shall be made only after the 11 [collective investment scheme] is fully subscribed and such announcement is made on the date on which the issue is to be closed. (7) Announcement regarding closure of 12 [collective investment scheme] shall be made only after the trustee is satisfied that at least minimum number of units have been subscribed and a certificate has been obtained to that effect from the Registrar to the Issue. (8) No incentives shall be offered through any advertisements to any one associated with marketing the issue. (9) In case there is a reservation for the Non-resident Indians, the 13 [collective investment scheme] advertisement shall specify the same and indicate the place in India from where the individual NRI applicant can procure application forms. (10) The advertisement shall not compare one 14 [collective investment scheme] with another, implicitly or explicitly, unless the comparison is fair and all information relevant to the comparison is included in the advertisement. (11) If any existing collective investment scheme indicates the past performance of the 15 [collective investment scheme] in advertisements, the basis for computing the rates of return/yield and adjustments made (if any) must be expressly indicated with a statement that, such information is not necessarily indicative of future results and may not necessarily provide a basis for comparison with other investments. (12) Advertisements on the performance of a 16 [collective investment scheme] or its Collective Investment Management Company shall compare the past performances only on the basis of per unit of statistics as per these regulations. Advertisements for NAVs, if any, must indicate the past as well as the latest NAV of a 17 [collective investment scheme]. The yield calculations shall be made as provided in these regulations. (13) The trustee shall: (i) ensure strict compliance by the Collective Investment Management Company set with the code of advertisement set out above, (ii) obtain an undertaking from the Collective Investment Management Company to the effect that the Collective Investment Management Company shall not directly or indirectly release, during any conference or at any other time, any material or information which is not contained in the offer documents, (ii) ensure that the Collective Investment Management Company obtains approval in respect of all 18 [collective investment scheme] advertisements and publicity materials from them. *************** NOTES:- 1 ibid. 2 ibid. 3 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 4 ibid. 5 ibid. 6 ibid. 7 ibid. 8 ibid. 9 ibid. 10 ibid. 11 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014. 12 ibid. 13 ibid. 14 ibid. 15 ibid. 16 ibid.. 17 ibid. 18 Substituted by the SEBI (Collective Investment Schemes) (Amendment) Regulations, 2014, w.e.f. 9-1-2014.