The Securities and Exchange Board of India (SEBI) has proposed a Common Advertisement Code (CAC) for regulated entities, aiming to replace the current patchwork of entity-specific advertisement frameworks with a single unified structure. The consultation paper was released on June 23, 2026.
The proposed code would apply across stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds and asset management companies – bringing multiple regulated categories under one advertising rulebook for the first time.
A key shift is procedural: the existing requirement for prior approval of advertisements would give way to post-issue reporting within 24 hours, easing the compliance timeline for regulated entities. The framework also opens the door for celebrities to be used in brand- or entity-level promotion, subject to specified conditions and prior approval – a notable departure from the sector’s traditionally cautious stance on star power.
Beyond approvals, SEBI’s proposal seeks to clarify what actually counts as an advertisement, offering an illustrative list of routine, factual and investor-service communications that would fall outside the definition. It would also permit entities to advertise ratings and rankings from the Past Risk and Return Verification Agency (PaRRVA), subject to conditions, building on SEBI’s existing framework for PaRRVA-verified risk and return metrics.
Rounding out the proposal is a common digital reporting platform for advertisement-related submissions, to be built by supervisory bodies. The consultation paper was opened for public comments, with the deadline set at July 14, 2026.
