SEBI has approved a Common Advertisement Code (CAC) for specified regulated entities. The new framework aims to bring advertising requirements applicable to different categories of SEBI-regulated entities under a common set of rules.
The decision was taken at SEBI's Board meeting on September 24, 2026.
What is the Common Advertisement Code?
The Common Advertisement Code provides a common framework for advertisements issued by specified regulated entities.
The framework covers entities such as:
- Stock brokers
- Depository participants
- Portfolio managers
- Investment advisers
- Research analysts
- Online bond platform providers
- Mutual funds and asset management companies
What changes for advertisements?
Under the new framework, prior approval will generally not be required for advertisements covered by the Common Advertisement Code. Instead, regulated entities will follow the prescribed post-issuance reporting requirements. There is an important exception for advertisements that contain celebrity endorsements.
What has SEBI said about celebrity endorsements?
SEBI has allowed celebrity endorsements for brand-level or entity-level promotion, subject to prior approval and prescribed safeguards. This does not mean that celebrities can freely promote specific financial products, services, or investment outcomes. The approval specifically concerns promotion at the brand or entity level.
Why has SEBI introduced a common code?
SEBI has introduced the common framework as part of its efforts to streamline advertising requirements for regulated entities. Instead of different advertising requirements applying across different categories, the Common Advertisement Code creates a more standardized framework.
What does this mean for investors?
For investors, advertisements from regulated entities will continue to be subject to SEBI's requirements. The new framework changes how regulated entities comply with advertising rules, including the approval and reporting process. Investors should continue to distinguish between promotional communication, factual information, and formal regulatory disclosures.
What happens next?
The SEBI Board has approved the framework. The applicable provisions will operate according to the final regulatory framework and implementation requirements. Regulated entities will need to follow the requirements applicable to their advertisements once the framework takes effect.
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