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Informist, Thursday, Sept. 24, 2026

 

--SEBI approves common advt code for certain regulated entities 

 

MUMBAI – The Securities and Exchange Board of India's board has introduced a common advertisement code for specific regulated entities, which Chairman Tuhin Kanta Pandey said will make advertising norms across asset classes "unambiguous". The new code replaces the entity-specific advertisement framework currently in place. 

 

"The existing advertisement framework for specified relevant entities is fragmented across different circular regulations, circulars, and guidelines. (Norms were) issued by supervising bodies such as stock exchanges," Pandey said. "The framework had varying terminology, approval mechanisms, disclaimers and compliance requirements. This results in operational inefficiencies and higher compliance costs," he said.

 

The common code will apply to stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, mutual funds, and asset management companies. The market regulator has allowed celebrities to be used for brand-level or entity-level promotion, subject to prior safeguards. 

 

"We are permitting brand entity-level celebrity endorsements subject to prior approval and safeguards. We are excluding genuine educational or investor awareness content and specified non-promotional communications from the definition of advertisement," Pandey said. 

 

The regulator has removed the need for prior approval, except for advertisements that include celebrity endorsements. SEBI said post-issuance reporting will be required within three working days. 

 

SEBI has permitted regulated entities to advertise ratings and rankings assigned by PaRRVA, or Past Risk and Return Verification Agency. It is an independent verification body set up by SEBI which audits and certifies past performance and risk metrics of investment professionals before they can be used in public advertisements.

 

The market regulator's updated advertisement framework provides a list of communications which it will not consider as advertisements. This is done to distinguish routine, factual, and investor-service communications from promotional content.   End

 

Reported by Anand JC

Edited by Saji George Titus

 

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