Securities Exchange Board of India (SEBI) has issued a consultation paper proposing a Common Advertisement Code (CAC) for specified regulated entities, including Stock Brokers, Depository Participants, Investment Advisers, Research Analysts, Online Bond Platform Providers, Portfolio Managers, and Mutual Funds/AMCs.
The following has been stated:
The proposed framework seeks to replace the existing fragmented and entity-specific advertisement regulations with a single, harmonised code embedded in the SEBI (Intermediaries) Regulations, 2008. Key proposals include replacing the requirement of prior approval of advertisements with post-issuance reporting within 24 hours, permitting the use of celebrities for brand-level promotions subject to prescribed conditions, and allowing the advertisement of ratings and rankings assigned by a Past Risk and Return Verification Agency (PaRRVA). The consultation paper also aims to provide greater clarity on what constitutes an advertisement, specify communications that will not be treated as advertisements, and establish a common digital reporting portal for advertisement disclosures. The proposed framework is intended to simplify compliance, enhance operational efficiency, promote ease of doing business, and strengthen investor protection through a technology-enabled and uniform regulatory approach. Public comments on the consultation paper have been invited until July 14, 2026.
