SEBI approves common advertising code, allows celebrity promotion by regulated entities

MUMBAI: The Securities and Exchange Board of India (SEBI) has approved a Common Advertisement Code (CAC) for several categories of regulated entities, replacing the entity-specific advertising frameworks prescribed under different SEBI regulations, master circulars and other directions.

The decision was taken at the 215th SEBI Board meeting held in Mumbai on 24 September. The common code is part of the regulator’s Ease of Doing Business initiative and seeks to bring advertising requirements for different regulated entities under a single framework.

The CAC will cover stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers and mutual funds and asset management companies.

Under the new framework, regulated entities will be allowed to use celebrities for brand-level or entity-level promotions, subject to prior approval and prescribed safeguards.

Celebrity endorsement advertisements will be an exception to the broader shift away from mandatory prior approvals. For other advertisements, regulated entities will no longer need mandatory approval before release.

Instead, they will have to report advertisements after issuance within three working days.

The framework also allows regulated entities to advertise ratings and rankings assigned by the Past Risk and Return Verification Agency.

The CAC also draws a distinction between routine, factual communications intended to provide investor services and promotional advertisements.

SEBI has provided an illustrative list of communications that will not be treated as advertisements under the framework. This is intended to give regulated entities greater clarity on which investor communications fall within advertising requirements.

The common code was deliberated with the Industry Standards Forum representing the concerned regulated entities, supervisory bodies including stock exchanges, and industry bodies such as the Association of Mutual Funds in India.

SEBI said the framework also incorporates feedback received on its consultation paper issued on 23 June 2026.

The CAC replaces existing entity-specific advertising provisions that regulated entities were required to follow under separate SEBI regulations, master circulars and other applicable directions.

The move follows SEBI’s broader efforts to simplify advertising rules across the securities market. Earlier, the regulator had proposed a revised advertising framework for online bond platform providers as digital marketing became an increasingly important route for retail distribution of fixed-income products.

That proposal also focused on advertisements using behavioural nudges or fear-of-missing-out messaging. SEBI had proposed curbs on promotions that could create artificial urgency or encourage investors to act before assessing the underlying security and its associated risks.