In a show cause notice, Sebi asked Reliance Mutual Fund and Reliance Asset Capital Management why there should not be a "restraint" on any new scheme by them in view of violations in audio visual advertisement of an infrastructure fund.
"Reliance Mutual Fund and Reliance Asset Capital Management Limited are directed to show cause as to why they should not be restrained from launching any new schemes for an appropriate period for violations," SEBI said in its order.
Sebi also asked these companies to withdraw the advertisement immediately in the current form and issue it again as per the regulator's norms.
As per the Sebi's norms, any audio visual advertisement for mutual funds should display standard warning for five seconds so that investors are able to take well informed investment decisions.
However, the time for display and voice over of the standard warning in the advertisement for Reliance Infrastructure Fund is for less than five seconds and thus not in compliance with the Sebi norms, the order said.
