SEBI Proposes Common Advertisement Code, Eases Rules for Regulated Entities

Moneylife Digital Team 24 June 2026

Investor Interest

Market regulator Securities and Exchange Board of India (SEBI) has proposed a common advertisement code (CAC) for specified regulated entities, seeking to replace the existing fragmented and entity-specific advertising frameworks with a unified, technology-enabled system. The proposal aims to simplify compliance requirements while maintaining investor protection standards.

According to a consultation paper released by the market regulator, the proposed CAC will apply to stockbrokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds and asset management companies (AMCs). The common code is proposed to be incorporated into the SEBI (Intermediaries) Regulations, 2008.

One of the key changes proposed by SEBI is the shift from mandatory prior approval of advertisements to a post-issuance reporting framework. Under the new system, regulated entities would only need to report advertisements within 24 hours of their release, significantly reducing procedural delays and compliance burdens.

SEBI has also proposed allowing regulated entities to engage celebrities for brand-level or entity-level promotions, subject to prescribed conditions and prior approval requirements. The move marks a significant departure from the existing restrictions on celebrity endorsements in the securities market.

The regulator says a unified advertising code will replace multiple entity- and exchange-specific advertising regulations currently in force. This is expected to reduce regulatory complexity and create a harmonised framework across different categories of market intermediaries.

The proposed framework would also permit regulated entities to advertise ratings and rankings assigned by past risk and return verification agencies (PaRRVA), subject to safeguards and specified conditions. SEBI believes this would help entities communicate legitimate distinctions and enhance transparency for investors.

To address ambiguities surrounding promotional communications, SEBI has proposed revising the definition of ‘advertisement’ and providing greater clarity on what constitutes promotional content. The consultation paper also includes an illustrative list of routine, factual and investor-service communications that would not be treated as advertisements.

Further, supervisory bodies would be required to develop digital platforms for advertisement reporting. A common reporting portal for entities regulated by multiple supervisory bodies has also been proposed to improve operational efficiency and strengthen regulatory oversight.

SEBI has invited public comments on the consultation paper until 14 July 2026. The regulator says the proposed framework seeks to strike a balance between ease of doing business and investor protection while modernising advertisement regulations across the securities market ecosystem.

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