SEBI allows celebrity endorsements, eases ad approvals with common code for regulated entities

As per the latest business developments, The Securities and Exchange Board of India (SEBI) has approved a common advertisement code for seven categories of regulated entities, allowing them to use celebrities for brand-level promotions and removing the requirement for prior approval for most advertisements.

The Common Advertisement Code (CAC) will apply to stock brokers, depository participants, investment advisers, research market watchers, online bond platform providers, portfolio managers and mutual funds/asset management firms.

The framework, approved as part of SEBI's Ease of Doing Business initiative, will replace the separate advertisement requirements at present prescribed for different categories of regulated entities under SEBI regulations, master circulars and circulars issued by bourses and supervisory bodies.

Under the new framework, regulated entities will no longer need mandatory prior approval for advertisements, except those containing celebrity endorsements.

Instead, entities will have to report advertisements after they are issued, within three working days. SEBI has permitted the use of celebrities for brand-level or entity-level promotion by regulated entities, subject to prior approval and prescribed safeguards.

The regulator has additionally allowed regulated entities to advertise ratings and rankings assigned by the Past Risk and Return Verification Agency.

Factual communication excluded

The common code additionally distinguishes routine, factual and investor-service communications from promotional content. SEBI has provided an illustrative list of communications that will not be treated as advertisements under the framework.

The common code was deliberated with the Industry Standards Forum representing the concerned regulated entities, as well as supervisory bodies such as bourses and industry bodies including the Association of Mutual Funds in India.

SEBI stated the framework has additionally taken into account feedback received on its consultation paper issued on June 23, 2026.