Mumbai: The Securities and Exchange Board of India (SEBI) has proposed a unified advertising framework for regulated market intermediaries, seeking to replace multiple entity-specific advertisement codes with a single Common Advertisement Code (CAC).
The proposal, outlined in a consultation paper released by the regulator, aims to bring stock brokers, depository participants, investment advisers, research analysts, portfolio managers, online bond platform providers, and mutual funds under a harmonised set of advertising rules.
A key feature of the proposed framework is the transition from mandatory pre-approval of advertisements to a post-reporting mechanism. Under the new system, regulated entities would be required to report advertisements to the relevant supervisory body within 24 hours of publication, reducing approval-related compliance burdens while maintaining regulatory oversight.
SEBI said the move is intended to streamline compliance requirements and create consistency in advertising standards across the securities market ecosystem.
The regulator has also proposed allowing the use of celebrities and public personalities in brand-level and entity-level promotional campaigns, subject to prescribed safeguards, disclosure requirements, and approval conditions.
Another notable proposal relates to performance-related communications. Regulated entities may be permitted to advertise ratings and rankings issued by the proposed Past Risk and Return Verification Agency (PaRRVA), provided specified conditions are met to ensure fair representation and investor protection.
To reduce ambiguity around promotional communications, SEBI has suggested revising the definition of “advertisement” and introducing clearer distinctions between marketing content and routine informational communication. The consultation paper includes an illustrative list of communications that would not be classified as advertisements, such as factual investor-service updates and operational notifications that do not have a promotional objective.
The regulator has further proposed the development of dedicated digital reporting platforms to facilitate advertisement disclosures and monitoring. For entities overseen by multiple supervisory bodies, a common reporting platform has been suggested to simplify filings and strengthen regulatory coordination.
The proposed Common Advertisement Code would be incorporated into the SEBI (Intermediaries) Regulations, 2008, replacing the existing patchwork of entity-specific and exchange-level advertising guidelines currently in force.
SEBI has invited comments from market participants and stakeholders on the proposal, with the consultation process remaining open until July 14, 2026.
The initiative reflects the regulator’s broader effort to modernise advertising oversight in India’s capital markets while balancing investor protection, transparency, and ease of doing business for regulated entities.
