SEBI Approves Unified Advertising Code Permitting Brand-Level Celebrity Endorsements Across Market Intermediaries — September 27, 2026

The Securities and Exchange Board of India (SEBI) has approved a comprehensive Common Advertisement Code (CAC) for regulated market intermediaries, overhauling fragmented marketing rules across the capital markets. Cleared during the regulator's 215th board meeting held in Mumbai on September 24, the unified code forms a major component of SEBI's Ease of Doing Business agenda.

The framework replaces entity-specific advertising norms previously dispersed across individual SEBI regulations, master circulars, and supervisory directives issued by recognized stock exchanges and industry associations.

Entities Covered Under the Unified Code

The newly approved Common Advertisement Code applies across seven distinct categories of market intermediaries:

• Stock brokers
• Depository participants
• Investment advisers (IAs)
• Research analysts (RAs)
• Portfolio managers
• Online bond platform providers (OBPPs)
• Mutual funds and asset management companies (AMCs)

Celebrity Endorsements and Key Reforms

The most noticeable policy shift under the CAC is permitting regulated entities to engage celebrities for corporate brand-level and entity-level promotional campaigns. Prior regulatory frameworks had largely restricted celebrity promotions, confining mutual fund campaigns to industry-wide investor awareness initiatives.

Under the new norms, celebrity participation is subject to mandatory prior approval and strict compliance safeguards. Crucially, celebrities remain entirely prohibited from recommending, endorsing, or promoting specific financial products, investment schemes, or advisory services to retail investors.

Operational Relief and Post-Issuance Reporting

To cut compliance delays and improve operational agility for financial institutions, SEBI has dismantled the requirement for mandatory prior clearance for standard, non-celebrity promotional campaigns. Instead, intermediaries are now required to submit post-issuance reports to supervisory authorities within three working days of releasing an advertisement.

The CAC also establishes clear boundaries between commercial marketing and routine, factual investor correspondence. SEBI has introduced an illustrative list of communications that are formally exempt from being classified as advertisements, ensuring administrative and operational updates sent to clients are not burdened by marketing compliance standards.

Furthermore, the code explicitly permits regulated entities to publish performance ratings and rankings, provided they are issued by the Past Risk and Return Verification Agency.

Industry Consultation and Implementation

The regulator formulated the framework following extensive discussions with the Industry Standards Forum (ISF), supervisory bodies such as stock exchanges, and industry organizations including the Association of Mutual Funds in India (AMFI). The final framework also incorporates market feedback received on a consultation paper published on June 23, 2026.

The Common Advertisement Code is set to be formally incorporated into the SEBI (Intermediaries) Regulations, standardizing marketing oversight while safeguarding Indian retail investors against misleading claims.

Tags: SEBI Stock Brokers Mutual Funds Portfolio Management Services AMFI