SEBI has introduced a Common Advertisement Code under the 2026 Intermediaries Regulations, harmonizing promotional rules for brokers, mutual funds, and research analysts.
New Common Advertisement Code Introduced by SEBI
SEBI, on 15 October 2026, proposed a unified Common Advertisement Code applicable across all registered intermediaries, including brokerage firms, research analysts, portfolio managers, and mutual funds. This replaces disparate advertising norms with a single, enforceable standard under the SEBI (Intermediaries) Regulations, 2026.
The Code prohibits misleading claims, exaggerated performance projections, and the use of unsubstantiated 'rankings' or 'awards'. Celebrity endorsements now require specific disclosures about the nature of the relationship and disclaimers stating that past performance does not guarantee future results. Promotional material must be pre-certified by a designated compliance officer.
Mutual funds and portfolio managers must ensure that advertisements include risk factors, expense ratios, and performance over multiple market cycles. Research analysts are barred from issuing promotional reports that coincide with public appearances or media interviews on the same stock.
Practitioners must now conduct regular audits of marketing content to ensure compliance. The Code significantly increases liability for both intermediaries and their compliance officers. With harmonized rules, legal teams advising financial firms will need to implement centralized approval systems for all investor-facing communication.
Citations
- SEBI (Intermediaries) Regulations, 2026 (Proposed, Fifth Schedule)
