SEBI Proposes Unified Advertisement Code
The Securities and Exchange Board of India has released a consultation paper detailing a Common Advertisement Code designed to replace the existing fragmented and entity-specific promotional frameworks. The proposed code applies to several regulated participants in the financial markets, including stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds or asset management companies. This unified standard is intended to be embedded directly within the SEBI Intermediaries Regulations.
Key Shifts in Compliance and Reporting
Under the newly proposed framework, the current requirement for obtaining mandatory prior approval for promotional material is set to be removed. Instead, regulated participants would transition to a post-issuance reporting mechanism where submissions are completed within 24 hours. Supervisory bodies are expected to develop common digital platforms to streamline this reporting process for entities dealing with multiple regulators, thereby improving operational efficiency.
Additionally, the proposals introduce distinct changes regarding promotional content:
- Celebrity endorsements for brand-level and entity-level promotions would be permitted under specific conditions and prior approval.
- Ratings and rankings assigned by a Past Risk and Return Verification Agency could be advertised under prescribed guidelines.
- A revised definition of advertisements aims to remove ambiguity, complemented by an illustrative list excluding routine, factual, and investor-service communications from the code.
Public Consultation Timeline
Market participants and the general public can review the comprehensive consultation paper available on the regulatory authority’s official website. Stakeholders wishing to share feedback, suggestions, or objections must submit their comments by the final deadline of July 14, 2026.
Primary source: This independent news summary is based on official information from Securities and Exchange Board of India. Read the original document for complete details.