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On June 23, 2026, the Securities and Exchange Board of India (SEBI) launched a consultation on a common advertisement code for specified SEBI-regulated entities. The consultation paper addresses the development of standardised advertising guidelines applicable across SEBI's regulatory perimeter. This initiative aims to establish consistent principles and standards for advertisements issued by market participants including investment advisers, portfolio managers, research analysts, and other specified regulated entities. The common advertisement code seeks to protect investors by ensuring that promotional materials are fair, transparent, and do not contain misleading or deceptive content. By creating unified advertising standards, SEBI intends to reduce regulatory fragmentation across different categories of market participants and enhance investor confidence in the securities market. The code will likely address key areas including disclosure requirements, use of testimonials and endorsements, performance representation, risk warnings, and comparative advertising practices. Standardising these requirements across entities will simplify compliance obligations while strengthening investor protection mechanisms across India's financial services sector. Market participants and other stakeholders are invited to submit comments on the consultation paper via SEBI's public comments portal. The specific deadline for responses has not been provided in the available source material. Responses submitted will inform SEBI's development of the final common advertisement code, which is expected to apply to all specified regulated entities under SEBI's jurisdiction. REFERENCES: https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComments=yes

The Securities and Exchange Board of India (SEBI) has issued a consultation paper on the Common Advertisement Code (CAC) for Specified SEBI Regulated Entities. The consultation paper contains: New definitions prescribing exactly what constitutes an "advertisement" and outlining the criteria for an individual to be considered a "celebrity," which includes ranking in a top 50 celebrity index or being an influencer with more than 500,000 followers. Regulations proposing a shift from a mandatory prior approval model to a post-issuance reporting model, requiring regulated entities to report advertisements to their supervisory body within 24 hours of issuance. Specific rules governing celebrity endorsements, permitting their use strictly at the brand/entity level (with prior approval required) and expressly forbidding them from endorsing specific products or services. Provisions outlining that short-format messaging, such as SMS or push notifications, can utilize abbreviated disclosures through a hyperlink, allowing entities to comply with mandatory risk warnings despite character limits. Administrative measures proposing the establishment of a centralized, digital advertisement reporting portal by supervisory bodies to handle post-issuance monitoring and celebrity endorsement approvals. Directives explicitly prohibiting the use of "dark patterns," such as false urgency or forced action, and allowing the use of ratings and rankings only if assigned by a Past Risk and Return Verification Agency (PaRRVA). Feedback may be submitted via this link by July 14, 2026.

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India's Securities and Exchange Board Issues Consultation on Common Advertisement Code for Regulated Entities

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Securities and Exchange Board of India Issues Consultation on Common Advertisement Code for Regulated Entities