FINANCIAL

COMMUNICATION
 VARIOUS FACTORS THAT HAVE
CONTRIBUTED TO THE GROWTH OF
FC IN INDIA
• DEMOGRAPHIC CHANGE
• SOCIAL AND BEHAVIOURAL CHANGE
• TECHNOLOGICAL CHANGE
BFSI-Banking financial
services and insurance
 IT INCLUDES
• PARTNERS
• EMPLOYEES
• INVESTORS
• FINANCIAL ANALYST
• INDIVIUAL STOCK HOLDERS
 INVESTOR PUBLICS
• DEPOSITORS • STOCKHOLDERS
• DEBENTURE HOLDERS • PORTFOLIO MANAGERS
• INSURANCE COMPANIES • RATING AGENCIES
• INVESTMENT COMPANIES • COMMERCIAL BANKERS
• MUTUAL FUNDS • INVESTMENT BANKERS
• INDIVIUAL SHAREHOLDERS • OVER THE COUNTRY BANKERS
• SECURED CREDITORS • SECURITY ANALYSTS
• PENSION FUNDS
 PE-Price earnings
PCG- Public consulting group
HNI- High Net worth Individual
 FINANCIAL
ADVERTISING
 SEBI REGULATIONS
• Definitions 2. In these regulations, unless the context otherwise requires: (b)
"advertisement" includes every form of advertising, whether in a publication,
by display of notices, signs, labels or by means of circulars, catalogues or
other documents, by an exhibition of pictures or photographic films, by way
of sound broadcasting or television, or in any other manner; Advertisement
Material 30. (1) Advertisements in respect of every scheme shall be in
conformity with the Advertisement Code as specified in the Sixth Schedule
and shall be submitted to the Board within 7 days from the date of issue
• Misleading statements 31. The offer document and advertisement materials
shall not be misleading or contain any statement or opinion which are
incorrect or false.
• SIXTH SCHEDULE
• Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
[Regulation 30]
• Advertisement Code
• (a) Advertisements shall be accurate, true, fair, clear, complete, unambiguous and
concise.
• (b) Advertisements shall not contain statements which are false, misleading, biased
or deceptive, based on assumptions/projections and shall not contain any
testimonials or any ranking based on any criteria.
• (c) Advertisements shall not be so designed as likely to be misunderstood or likely to
disguise the significance of any statement. Advertisements shall not contain
statements which directly or by implication or by omission may mislead the investor.
• (d) Advertisements shall not carry any slogan that is exaggerated or unwarranted or
any slogan that is inconsistent with or unrelated to the nature or the risk and return
profile of the product.
CONTD…
• (e) No celebrities shall form part of the advertisement.
• (f) Advertisements shall not be so framed as to exploit the lack of experience or
knowledge of the investors. Extensive use of technical or legal terminology or
complex language and the inclusion of excessive details which may detract the
investors should be avoided.
• (g) Advertisements shall contain information which is timely and consistent with the
disclosures made in the Scheme Information Document, Statement of Additional
Information and the Key Information Memorandum.
• (h) No advertisement shall directly or indirectly discredit other advertisements or
make unfair comparisons.
CONTD…
• (i) Advertisements shall be accompanied by a standard warning in legible
fonts which states ‘Mutual Fund investments are subject to market risks, read
all scheme related documents carefully’. No addition or deletion of words
shall be made to the standard warning.
• (j) In audio-visual media based advertisements, the standard warning is to be
displayed visually and the accompanying voiceover reiteration must be be
audible, clear and understandable. For example, in standard warning both the
visual and the voiceover reiteration containing 14 words running for at least
5 seconds may be considered as clear and understandable.
 ADVANTAGES
OF
FINANCIAL ADVERTISING
• PROVIDES INFORMATION ABOUT INVESTMENT OPPORTUNITIES
• PROVIDES EDUCATION AND GUIDANCE TO INVESTORS
• PUBLICITY TO COMPANY AND ITS OPERATION
• REMNIDER TO INVESTING CLASS
• SUPPORT TO DEALERS IN INVESTMENT MATTERS
• GOODWILL AND POPULARITY TO COMPANIES
• ECONOMIC AND SOCIAL SIGNIFICANCE
 PR FUNCTION IN FINANCIAL
ADVERTISING
1. MUST ADHERE TO DECENT AND TRUTHFUL NORMS WHILE HANLING
CORPORATE CAMPAIGNS
2. TO BE FULLY CONVERSANT WITH THE GUIDELINES ISSUED BY ASCI
3. TO REVIEW THE RESULTS ON REGULAR BASIS OF FA
4. MEDIA PLANNING, RESEARCH,RELATIONSAND SPECIALIZATION ARE
IMPORTANT AREAS OF PR
5. PR HAS TO BE MARKET MINDED ABOUR ADVERTISING AGENCY,ADVERTISING
POLICY OF THE COMPANY ETC
6. PR HAS TO PLAY AN INFLUENCING ROLE,TO PRODUCE RIGHT
ADVERTISEMENT CAMPAIGN AT RIGHT TIME FOR RIGHT SEGMENT AT RIGHT
COST.