Last Updated on June 24, 2026 12:44 am by BIZNAMA NEWS
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India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has proposed a significant overhaul of advertising norms for regulated financial entities, including stock brokers, mutual funds, investment advisers and portfolio managers, as part of efforts to streamline compliance and strengthen investor protection.
In a consultation paper released on Monday, SEBI proposed allowing regulated entities to engage celebrities and public figures for corporate and brand-level promotions. However, the regulator has drawn a clear line by prohibiting celebrity endorsements of specific investment products, schemes or financial services. Such promotions would be subject to strict safeguards, including mandatory risk disclosures.
The proposal forms part of a broader plan to introduce a unified Common Advertisement Code (CAC) for all specified regulated entities. The move seeks to replace multiple entity-specific and exchange-specific advertising guidelines currently in force, creating a single framework for financial sector advertising.
Shift Towards Faster Compliance
In a major compliance-related reform, SEBI has proposed eliminating the requirement for prior approval of advertisements by stock brokers, Online Bond Platform Providers (OBPPs), investment advisers and research analysts.
Instead, these entities would be required to submit advertisements to the concerned stock exchange or SEBI-recognised supervisory body within 24 hours of publication. The regulator said the change reflects the realities of an increasingly digital and fast-moving advertising ecosystem, where obtaining prior clearances can delay communication and marketing campaigns.
Market participants view the proposal as a step towards reducing regulatory friction while maintaining oversight through post-publication reporting requirements.
Ratings and Rankings May Feature in Ads
SEBI has also proposed permitting the use of ratings and rankings in advertisements, provided such assessments are issued by a recognised Past Risk and Return Verification Agency. The measure could allow financial firms to highlight independently verified performance metrics while maintaining transparency standards.
In another investor communication reform, the regulator has suggested allowing abbreviated risk disclosures in formats such as SMS messages, mobile push notifications and pop-up advertisements. Detailed disclosures would remain accessible through embedded links, helping firms communicate more effectively on digital platforms without compromising investor awareness.
Industry Impact
The proposed changes are expected to benefit a broad range of market intermediaries by simplifying advertising regulations and aligning them with contemporary digital marketing practices. At the same time, SEBI has sought to preserve investor safeguards by retaining restrictions on product-specific celebrity endorsements and mandating appropriate risk disclosures.
The regulator has invited comments from stakeholders, industry participants and investors on the proposed framework. Public feedback can be submitted until July 14.
If implemented, the Common Advertisement Code would mark one of the most comprehensive reforms of financial advertising regulations in recent years, potentially reshaping how financial services firms market their brands and engage with investors.