SEBI Notifies Common Advertisement Code Allowing Celebrity Brand Endorsements for Market Intermediaries — October 12, 2026

The Securities and Exchange Board of India (SEBI) has notified a comprehensive Common Advertisement Code (CAC) for market intermediaries. The streamlined framework replaces fragmented, entity-specific advertising guidelines across different regulations and circulars, unifying advertising norms for key capital market participants under a single standard.

Under the notified rules, regulated financial entities can now feature celebrities in brand-building and entity-level promotional campaigns, subject to prior regulatory approvals and clear safeguards. However, the regulator has imposed a strict ban on celebrities endorsing specific financial products, schemes, or investment services.

Unified Coverage Across Intermediaries

The new code applies uniformly across seven major categories of market participants:

• Stock brokers
• Depository participants
• Asset management companies (AMCs) and mutual funds
• Portfolio managers
• Investment advisers
• Research analysts
• Online bond platform providers (OBPPs)

Previously, advertising rules were disjointed. For instance, mutual funds were only allowed to use celebrities for broad industry-level educational campaigns (such as Association of Mutual Funds in India initiatives) since 2017, but individual fund houses were prohibited from doing so for their own corporate brands. Stock broking and investment advisory firms also faced rigid restrictions. The CAC now provides a level playing field, allowing an AMC or brokerage to engage high-profile personalities to enhance corporate identity, trust, and brand visibility.

Guardrails on Celebrity Promotion

While opening the door to celebrity-led marketing, SEBI has maintained strict barriers to safeguard investor interests.

Celebrities are prohibited from pitching individual mutual fund schemes, stock recommendations, advisory packages, or specific financial instruments. The regulator noted that while brand associations merely establish a general connection with an entity, product-level endorsements risk unduly influencing retail investors by generating unwarranted assumptions regarding safety, suitability, or financial outcomes.

Furthermore, unlike general marketing campaigns, any advertisement featuring a celebrity will continue to require mandatory prior approval from SEBI or designated supervisory bodies before it can be released.

Shift to Post-Issuance Reporting

In a major relief designed to improve the ease of doing business, SEBI has done away with mandatory prior approvals for routine promotional content.

Under the revised norms:

• Market intermediaries no longer require pre-clearance from stock exchanges or supervisory bodies for standard promotional materials.
• Regulated entities must submit advertisements to the relevant supervisory bodies within three working days after release.
• Turnaround times for time-sensitive, topical, and digital social media campaigns are expected to decrease significantly.

Investor Protection and Content Disclosures

The CAC draws a firm line between routine operational messages and marketing collateral. Communications intended purely for investor servicing, onboarding, transaction updates, account statements, and statutory disclosures will not be categorized as advertisements.

To prevent deceptive marketing practices, the framework explicitly bans:

• Deceptive designs or dark patterns as specified by the Central Consumer Protection Authority (CCPA)
• Guarantees or promises of fixed and assured returns
• Misleading performance claims and unverified testimonials
• Unauthorized use of logos belonging to SEBI, stock exchanges, or depositories

The framework also permits entities to advertise ratings and rankings assigned by the Past Risk and Return Verification Agency (PRRVA), giving investors verified reference points for evaluating historical performance data.

Tags: SEBI Mutual Funds Stock Brokers AMFI Investment Advisers Portfolio Managers