SEBI Inserts Common Advertisement Code for Brokers, Advisers, AMCs

What changes

A new Chapter IIID is inserted after Chapter IIIC and before Chapter IV. It contains regulations 16G onwards and works as a code for every advertisement issued by a regulated entity about products or services within SEBI's remit.

• Meaning of advertisement: anything said or promoted by or for the entity, in any form (written, audio, visual or oral) and on any medium: print, broadcast, digital or outdoor.
• Mandatory content: the entity's name, SEBI registration number and logo (if any), and the disclaimers SEBI prescribes. For short messages such as SMS or pop-ups, a clickable link to the official website showing these details.
• Not advertisements: investor education, research reports to existing clients, product lists, information sent on request, product demos, greetings, recruitment notices, sponsorship credits and client feedback surveys, subject to the conditions in the Chapter. Anything that promotes a product or induces its purchase is still an advertisement.
• Celebrities: they may promote the brand or the entity, and products may be named, but no claim or inducement about a specific product or service is allowed. The advertisement needs prior approval of the supervisory body, or of SEBI where none is prescribed. The cost cannot be passed on to clients or charged to a mutual fund scheme.
• Duties: accurate, fair, complete and clear content; no misleading presentation; no targeting of inexperienced investors; no heavy jargon; sources and dates for data, graphs and charts; and an example-only disclaimer where securities or schemes are named. In print it must be on the same page; in video, in the same frame.
• Barred: incentives, vouchers, coupons, monetary certificates, tokens or subscription plans offered to induce trading, services, re-activation, investment or app downloads. A suspended entity cannot advertise, alone or with others, while suspended.

Who it applies to

Stock brokers, depository participants, online bond platform providers, investment advisers, research analysts, mutual funds, asset management companies and portfolio managers, and other entities SEBI notifies from time to time. Their supervisory bodies are the stock exchanges, depositories, the Investment Adviser Administration and Supervisory Body, the Research Analyst Administration and Supervisory Body, AMFI and the Association of Portfolio Managers.

From when

The regulations come into force on the 180th day from their publication in the Official Gazette on 9 October 2026. Notification date: 8 October 2026.

Who counts as a celebrity

The definition is wide. It includes a person in a recent celebrity index top 50, a lead performer in a popular film, TV show or web series, an influencer above the ASCI follower threshold, a national or international sportsperson, a TV host or anchor (one season or at least 10 episodes), a winner or runner-up of a popular show, a virtual influencer, and anyone SEBI or the supervisory body believes can sway viewers. The entity's own founders, promoters, directors, key managerial personnel and senior management appearing in its advertisements are not treated as celebrities.

Context and background

The amendment brings advertising by the different types of SEBI-regulated entities under one chapter of the Intermediaries Regulations. The earlier text had no chapter on advertisements, so the same rules now apply to brokers, advisers, fund houses and others alike.

Effect in practice

• Review all advertisements, social media posts, videos and SMS templates against the new content and disclaimer requirements before the effective date.
• Put registration number, name and logo in every advertisement, and add the link in short messages.
• Obtain supervisory body approval before using any celebrity, and keep the cost off client accounts and mutual fund schemes.
• Withdraw referral rewards, vouchers, coupons and similar incentives used to attract clients.
• Treat investor education material carefully: keep branding minimal and avoid any product push.