The Securities and Exchange Board of India (SEBI) has proposed a Common Advertisement Code (CAC) for specified regulated entities, seeking to replace multiple entity-specific and exchange-specific advertising frameworks with a unified set of rules.
The consultation paper, issued on June 23, 2026, covers stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers and mutual funds or asset management companies.
Under the proposed framework, regulated entities would no longer need prior approval for advertisements. Instead, they would be required to report advertisements within 24 hours of their issuance.
The proposal also seeks to permit regulated entities to use celebrities for brand- or entity-level promotion, subject to specified conditions and prior approval requirements.
SEBI has proposed clearer criteria for determining what constitutes an advertisement, along with an illustrative list of routine, factual and investor-service communications that would not fall within the definition of an advertisement.
The proposed code would also allow regulated entities to advertise ratings and rankings assigned by the Past Risk and Return Verification Agency (PaRRVA), subject to specified conditions.
In another proposed change, SEBI has suggested creating a common digital reporting platform for advertisement-related submissions by regulated entities. The platform would be developed by the relevant supervisory bodies.
The consultation paper was issued for public comments, with July 14, 2026 set as the deadline for submissions.
