SEBI replaces Mutual Fund advertising rules with the Common Advertisement Code under Intermediaries Regulations.
SEBI Aligns Mutual Fund Ads with Common Advertisement Code
In its 2026 amendment to the SEBI (Mutual Funds) Regulations, SEBI has repealed the Fifth Schedule governing advertisements and replaced it with the Common Advertisement Code established under the SEBI (Intermediaries) Regulations, 2025. This ensures uniformity in promotional content across all registered intermediaries, including brokers, research analysts, and portfolio managers.
The Common Code regulates claims in advertisements, prohibits unrealistic performance projections, and places strict conditions on celebrity endorsements. It also mandates risk disclosures and fair comparisons, enhancing investor protection. The change eliminates regulatory silos between different market participants' promotional practices.
AMCs and marketing teams must now align all investor-facing materials with the unified code. This harmonization reduces compliance complexity and ensures a level playing field. The reform underscores SEBI’s focus on curbing misleading marketing while promoting informed investment decisions.
Citations
- SEBI (Mutual Funds) Regulations, 2026 Amendment; SEBI (Intermediaries) Regulations, 2025, Fifth Schedule
