SEBI Common Advertisement Code 2026: New Advertising Rules for Intermediaries and Mutual Funds

An investment advertisement may look convincing, but that does not mean every claim in it is reliable. A promise of high returns, an endorsement from a familiar face or a comparison with another financial product can influence how people invest their money.

The Securities and Exchange Board of India (SEBI) has now introduced a Common Advertisement Code 2026 to set common advertising requirements for several categories of regulated financial entities.

On 8 October 2026, SEBI issued two amendments covering intermediaries and mutual funds. Both were published in the Official Gazette on 9 October 2026. The first introduces Chapter IIID into the SEBI (Intermediaries) Regulations, 2008, while the second changes the mutual fund regulations to refer to that chapter.

The new provisions cover stockbrokers, investment advisers, research analysts, mutual funds, asset management companies and other specified entities. They deal with issues businesses regularly encounter when promoting financial services, including return claims, advertising disclosures, celebrity campaigns and promotional offers.

For a regulated financial business, the main question is no longer simply whether an advertisement looks professional. It must also be accurate, clearly presented and consistent with SEBI's applicable advertising requirements.

SEBI Advertisement Code 2026: Notification at a Glance

The notifications are related but serve different purposes. One introduces the actual advertising provisions; the other brings the relevant mutual fund provisions under the common framework. 

What Is the SEBI Common Advertisement Code 2026?

The Common Advertisement Code is a set of rules governing how specified SEBI-regulated entities can advertise their products, services and brands.

It is introduced under Chapter IIID of the SEBI (Intermediaries) Regulations, 2008.

The code covers more than paid newspaper or television advertisements. It also considers promotional communication made through digital platforms, websites, social media and other channels.

An important feature is the definition of advertisement under Regulation 16G. It includes communication issued directly or indirectly by or on behalf of a regulated entity that promotes, invites interest in or solicits business for its products or services. Brand-level promotion can also fall within this definition.

What Does the New Code Focus On?

The provisions mainly address five areas.

• Advertising accuracy: Financial promotions must provide fair and accurate information without making misleading promises.
• Investor disclosures: Advertisements must contain the basic regulatory information and applicable disclaimers.
• Celebrity advertising: Endorsements are subject to restrictions, and prior approval is required in specified circumstances.
• Promotional practices: Certain incentives, ratings, rankings and deceptive designs are restricted.
• Accountability: Covered entities have responsibilities concerning unauthorised advertisements, reporting and compliance failures.

The rules do not prevent financial businesses from promoting their services. They establish conditions for doing so responsibly.

Why Has SEBI Introduced Common Advertising Rules?

The two notifications do not provide a separate explanatory statement listing every reason behind the amendments. However, their requirements indicate the concerns the code is designed to address.

Preventing Misleading Investment Promotions

Financial advertisements can influence investment decisions, particularly when they describe expected returns or compare investment products. A message promising unusually high or risk-free returns can create expectations that may not reflect the actual risks involved.

The new code restricts such representations and requires promotional information to be accurate and understandable.

Making Financial Information Easier to Understand

Financial advertisements sometimes use complicated language or large amounts of information. Regulation 16L requires advertisements to avoid excessive technical or legal language and unnecessary detail that may mislead or confuse investors.

This means compliance involves more than adding a lengthy disclaimer. The main message itself must be presented fairly.

Bringing Different Entities Under Common Requirements

The code provides a shared set of advertisement provisions for the regulated entities identified in the amendment. The second notification also aligns relevant mutual fund advertisement requirements with Chapter IIID.

This brings greater consistency to the regulatory provisions governing covered advertisements.

Controlling Influencer and Celebrity Promotions

Celebrity endorsements are often used to attract attention to financial brands. The code allows brand-level endorsements but restricts direct or indirect claims and inducements relating to specific products or services.

It also introduces specific approval requirements for advertisements featuring celebrities.

Which Financial Businesses Must Follow the New SEBI Advertisement Rules?

Not every company offering financial services is automatically covered.

Regulation 16G identifies the regulated entities, while Regulation 16H applies the chapter to advertisements concerning products and services under SEBI's purview.

Covered Entities

SEBI may identify additional entities from time to time.

Does the Code Apply to Marketing Agencies?

A marketing agency does not become a SEBI-regulated entity simply because it prepares advertisements for a financial company.

However, advertisements issued on behalf of covered entities fall within the broad definition in Regulation 16G.

This makes coordination with external agencies important. Marketing teams should understand the restrictions before publishing client campaigns.

What Types of Advertisements Are Covered?

One important aspect of the new rules is that the advertising medium does not determine whether compliance is required.

The definition covers several communication formats.

Print and Outdoor Advertisements

Newspaper advertisements, magazines, billboards, transit promotions and in-store displays are included. Such advertisements need to meet applicable disclosure and content requirements.

Television, Radio and Podcasts

Broadcast advertisements are also covered. Businesses using video or audio campaigns must consider the appropriate manner of presenting required disclaimers and information.

Websites and Social Media

The definition expressly includes websites, social media, streaming services and online news sites. Advertisements promoted through these channels must meet the applicable requirements when issued by or on behalf of a covered entity.

Mobile Notifications and Short Messages

SMS, push notifications and pop-ups can also qualify as promotional communications. The code recognises that short-format messages may have character limitations and provides a conditional hyperlink arrangement for certain required disclosures.

Is Every Educational Social Media Post an Advertisement?

No. Regulation 16J provides exclusions for specified educational and informational communications. However, whether the exclusion applies depends on the actual content. A message intended to provide financial education may be treated differently from one designed to encourage viewers to purchase a particular product or obtain a regulated service.

This distinction matters for companies publishing regular financial education content alongside their marketing campaigns.

Which Communications Are Excluded from SEBI's Advertisement Rules?

Not everything a financial company publishes is an advertisement. Businesses also need to communicate with investors, provide information about their services and share educational material.

Regulation 16J recognises this difference. It identifies certain communications that are not considered advertisements, subject to their conditions.

1. Educational and Informational Content

A company can publish material intended to explain financial concepts, improve awareness or provide training without automatically treating it as advertising. However, three conditions are relevant:

• The company's branding must be minimal and incidental.
• The content must not promote a specific product or service or try to influence a purchase decision.
• Where education and awareness funds are used, the communication must be reported to the supervisory body or SEBI for post-facto monitoring.

The purpose and presentation of the material therefore matter.

2. Research Reports and Financial Analyses

Research reports, recommendations and analyses shared with existing clients or investors can fall within the exclusion if they do not contain claims about the regulated entity's performance. This does not mean every report published by a research analyst is automatically excluded from advertising requirements.

3. Factual Product and Service Information

A company's website or application may contain a list of available products or services, together with brief factual descriptions. Such communication is recognised under Regulation 16J. The distinction changes when the information is presented to solicit interest in obtaining a product or service.

4. Other Excluded Communications

The code also recognises several other categories.

The main distinction: Regulation 16J(2) states that communication promoting a regulated entity's products or services, or soliciting interest in obtaining them, is considered an advertisement.

Businesses should not assume that calling promotional content a webinar, educational post, or product update automatically removes it from the advertising rules.

What Information Must Be Disclosed in SEBI-Regulated Advertisements?

The Common Advertisement Code makes certain disclosures compulsory for advertisements issued by covered regulated entities.

Under Regulation 16I, every applicable advertisement must contain basic information identifying the entity, along with the disclaimers specified by SEBI.

Mandatory Information

These requirements help viewers understand which regulated entity is responsible for the advertisement.

An important compliance point is that the notification does not reproduce every disclaimer format. Businesses must check any applicable SEBI directions before finalising their advertising creatives.

What if the Advertisement Has Limited Space?

Short messages such as SMS, push notifications and pop-ups may not have enough characters to display the full required information. Regulation 16I addresses this situation.

Where character limits prevent the inclusion of basic details and disclaimers, the regulated entity must include a hyperlink leading to those details and disclaimers on its official website. This arrangement applies because of the stated limitation. It is not a general exemption from advertisement disclosures.

Special Disclaimer for Securities or Schemes Used as Examples

Regulation 16L(1)(e) deals with advertisements that refer to particular securities or investment schemes as examples.

The advertisement must state that the securities or schemes are examples and should not be treated as recommendations.

The placement is also prescribed.

• For written advertisements, the disclaimer must appear on the same page as the example.
• For video advertisements, it must appear in the same frame where the relevant security or scheme is displayed.

Simply putting the disclaimer at the end of a video would not meet the specific placement requirement.

What Are SEBI's New Rules for Celebrity and Influencer Endorsements?

Celebrity endorsements receive detailed attention under the Common Advertisement Code.

The rules identify who may qualify as a celebrity, the promotional activities permitted and the approval requirements.

Who Is Considered a Celebrity?

Regulation 16G(2) provides a detailed definition rather than limiting the term to film stars.

The regulation also contains a limited exclusion relating to founders, promoters, directors, key managerial personnel and senior management appearing in their own regulated entity's advertisements. The notification does not provide a single numerical follower threshold for all influencers. It refers to the threshold under applicable ASCI guidelines.

Can Celebrities Promote Financial Companies?

Yes, but within the boundaries established under Regulation 16K.

A celebrity may endorse a regulated entity at the brand or entity level.

The endorsement may mention the names of products or services. However, it must not make direct or indirect claims about a particular product or service or encourage people to obtain it through product-specific inducements.

This means celebrity involvement is permitted, but the content must remain within the allowed scope.

Is Prior Approval Required for Celebrity Advertisements?

Yes.

An advertisement featuring a celebrity can be issued only after receiving approval from the relevant supervisory body. Where no supervisory body has been specified by SEBI for that regulated entity, approval must come from SEBI. Businesses planning celebrity advertising should account for this requirement before committing to publication dates.

Who Must Bear the Endorsement Expenses?

Regulation 16K also addresses endorsement costs. Expenses incurred on celebrity endorsements cannot be passed on to clients or charged to mutual fund schemes. Relevant disclaimers prescribed under the regulatory framework must also be included.

For financial companies and AMCs, this makes celebrity contracts, promotional claims and expense allocation important areas of review.

What Advertising Claims Are Prohibited Under the New SEBI Code?

Regulation 16O contains restrictions on the content of advertisements.

These are particularly relevant because promotional language that appears attractive to a marketing team may create regulatory concerns when it is unsupported or misleading.

Guaranteed or Risk-Free Returns

Advertisements must not directly or indirectly promise or assure guaranteed, risk-free or indicative returns to prospective or existing clients. Claims giving investors an unrealistic expectation of certainty can therefore conflict with the code. Businesses should review statements promising particular investment outcomes.

Promises of Fixed Returns

Fixed-return assurances are also restricted. The regulation provides a conditional exception for online bond platform providers or other entities where SEBI specifies the permitted form and manner. This should not be interpreted as blanket permission to advertise guaranteed returns.

Misleading or Exaggerated Claims

Advertisements must not contain false, deceptive, biased, exaggerated, ambiguous or assumption-based content. The rules also prohibit testimonials. A company's marketing claim should not create an impression that is materially different from the factual position.

Past Performance and Future Returns

Advertisements must not suggest that previous performance will necessarily happen again. References to past performance are permitted only in the manner specified by SEBI from time to time. The issue is not simply whether past performance information is true. The way it is presented also matters.

Unfair Comparisons

Businesses must not publish advertisements that unfairly compare their services with those of other regulated entities. The code also restricts disparaging competing entities and making misleading comparisons between different types of products or asset classes.

Unsupported Ratings and Promotional Expressions

Regulation 16O restricts vague terms such as high yield, high rated or high returns when they lack a proper basis and clarity. Other prohibitions include exploiting investors' limited knowledge, using unwarranted slogans and publishing legally prohibited content.

Use of SEBI and Other Regulatory Logos

Advertisements must not use the logos, images or symbols of SEBI, Market Infrastructure Institutions or other specified reputable organisations without specific permission. Regulated entities should not use regulator-related imagery in a way that suggests official endorsement where no such endorsement exists.

Advertising Claims: Compliance Review Table

The central requirement is straightforward: financial advertisements must not encourage decisions through information that is misleading, incomplete or presented unfairly.

Are Promotional Incentives and Trading Offers Restricted?

Yes. Regulation 16L(1)(g) deals with incentives designed to encourage clients to undertake specified activities.

It restricts offers involving vouchers, coupons, monetary certificates, tokens, subscription plans and other forms of incentives where they are used for the prohibited inducement purposes.

These purposes include encouraging clients to:

• Trade securities.
• Obtain regulated services.
• Reactivate inactive client accounts.
• Invest in schemes.
• Download mobile applications.

The rule concerns the purpose of the incentive, not merely the name given to the promotional offer.

A company should therefore examine why a particular incentive is being offered and what action the offer is intended to encourage. The provision should not be described as a blanket ban on every commercial discount or customer benefit without examining the relevant circumstances.

How Does SEBI Regulate Ratings, Rankings and Performance Claims?

Regulation 16N establishes conditions for using ratings and rankings in advertisements. The regulation permits ratings or rankings assigned by a Past Risk and Return Verification Agency, subject to specified requirements.

What Conditions Apply?

• Meaning and methodology: The advertisement must explain the meaning and methodology of the rating or ranking. Alternatively, it may direct investors to the relevant website containing this information.
• Investor decision-making: The advertisement must state that the rating or ranking is only one factor to consider when deciding whether to use a regulated entity's services.
• Comparability: The rating or ranking must arise from a study or survey covering all relevant market participants within the concerned category.
• Additional directions: SEBI may prescribe further conditions.

The provision is intended to prevent ratings or rankings from being presented without the necessary explanation or context.

Businesses should examine the source of any ratings used in their advertisements and ensure the relevant conditions are met.

What Are Dark Patterns, and Why Has SEBI Restricted Them?

Regulation 16M prohibits covered regulated entities from engaging in dark patterns identified in Annexure I of the CCPA's Guidelines for Prevention and Regulation of Dark Patterns, 2023. A dark pattern is a deceptive design practice that manipulates or misleads users into making choices they may not otherwise make.

In financial services, website and application design may influence how customers respond to an offer, choose a service or complete an online journey. The SEBI amendment directly refers to the CCPA guidelines.

Businesses should therefore examine relevant website and app interfaces against the specific dark-pattern practices identified in those guidelines. This is different from a general requirement to redesign every financial application. The prohibition concerns the practices covered by the referenced guidelines.

What Happens if Someone Publishes an Advertisement Without a Company's Permission?

Unauthorised third-party advertising is covered by Regulation 16L(2).

The provision addresses advertisements published on any platform without the regulated entity's consent.

Once the regulated entity becomes aware of such an advertisement, it must take the prescribed action.

Required Actions

The seven-day period is an important requirement because it begins when the regulated entity becomes aware of the unauthorised advertisement.

Businesses may find it useful to establish a process for escalating such incidents internally. Marketing, legal and compliance teams can then coordinate the required response without losing time identifying who is responsible.

What Has Changed for Mutual Funds and Asset Management Companies?

The second SEBI notification, numbered SEBI/LAD-NRO/GN/2026/324, changes the advertising provisions under the SEBI (Mutual Funds) Regulations, 2026.  Its main purpose within the notified text is to replace existing references to the Fifth Schedule with references to the Common Advertisement Code.

Amendment to Regulation 28

In Regulation 28, the reference to the Fifth Schedule is replaced with a reference to Chapter IIID of the SEBI (Intermediaries) Regulations, 2008.

Amendment to Regulation 81(l)

A corresponding change has been made in Regulation 81(l). The amended provision refers to Chapter IIID rather than the Fifth Schedule.

Removal of the Fifth Schedule

The notification expressly omits the Fifth Schedule from the Mutual Funds Regulations, 2026. This does not mean that mutual fund advertising is becoming unregulated. Instead, the applicable reference is being changed to the common chapter.

What Does This Mean for Mutual Fund Advertising?

Mutual funds and AMCs should assess their promotional practices against the relevant common requirements.

These include:

• Accuracy and clarity of advertisements.
• Applicable entity information and disclaimers.
• Restrictions on misleading return representations.
• Celebrity endorsement conditions.
• Ratings and rankings.
• Promotional incentives.
• Relevant reporting and supervisory requirements.

The second amendment does not itself change mutual fund investment limits, NAV calculations or redemption rules. Its stated changes concern advertisement-related provisions. 

SEBI Advertising Rules: Old vs New Requirements

The amendments introduce a common chapter and change the regulatory references governing mutual fund advertisements.

It is important not to assume that every requirement is completely new. Some restrictions may already have existed under earlier SEBI regulations, circulars or advertising codes.

The following table focuses on the changes established by the two notifications.

A full historical comparison of each advertising restriction would require examining the relevant earlier SEBI circulars and regulatory provisions.

For businesses, the immediate priority is understanding the amended requirements that will apply after commencement.

SEBI Common Advertisement Code 2026: Implementation Timeline

Both amendments contain the same commencement provision. They were issued on 8 October 2026, published in the Gazette on 9 October 2026, and are stated to come into force on the 180th day from Gazette publication.

The calculated commencement date is 7 April 2027, based on the 180-day rule and Gazette publication date. Businesses should confirm whether SEBI issues any subsequent amendment or clarification affecting commencement.

Is There a Separate Grace Period?

The attached notifications do not expressly provide a general additional grace period after commencement. They also do not prescribe one universal deadline for auditing all previous advertisements.

However, reviewing advertisements that will remain active after commencement is a sensible compliance measure.

Who Will Supervise Advertisement Compliance?

Regulation 16G(4) identifies supervisory bodies for the covered entities.

These bodies are relevant to the approval and supervisory provisions established under the code.

Advertisement Approval

Prior approval is specifically required for advertisements featuring celebrities under Regulation 16K. The notification does not state that every ordinary advertisement must undergo the same approval process.

Advertisement Reporting

Regulation 16P provides that advertisement reporting requirements will apply as specified by SEBI from time to time.

Businesses should check the relevant directions rather than assuming a monthly, quarterly or other universal filing schedule.

Regulatory Action

Regulation 16Q also allows SEBI to direct supervisory bodies to take appropriate action in cases involving violations.

How Will the New Advertisement Code Affect Financial Businesses?

The effect will depend on the type of regulated entity and its marketing activities.

Businesses relying heavily on digital promotions, celebrity campaigns or performance-related advertising may have more material to review than those using limited factual communications.

Stockbrokers and Trading Platforms

Stockbrokers may need to review advertisements promoting trading services, mobile applications and other brokerage offerings.

Particular attention should be given to promotional incentives, return claims and misleading messages.

Mutual Funds and AMCs

Mutual fund companies must consider the updated regulatory references together with the common advertising provisions.

Advertising teams may need to review disclaimers, schemes used as examples, celebrity arrangements and promotional claims.

Investment Advisers and Research Analysts

These entities should pay attention to the distinction between educational or analytical communication and promotional content.

Claims concerning returns, expertise or performance must also be assessed against the applicable restrictions.

Portfolio Managers

Advertisements involving historic performance, ratings and investment-related claims may require careful review.

The regulation restricts misleading performance statements and requires the appropriate treatment of rankings.

Financial Marketing Agencies

Marketing agencies working for regulated entities may need to adjust creative review processes.

A financial advertisement should not go live merely because the marketing team has approved its design. The regulated entity's relevant compliance requirements must also be considered.

Likely Business Impact

These are practical implications and should not be presented as separately prescribed staffing or departmental requirements.

What Are the Risks of Not Following SEBI Advertisement Rules?

Regulation 16Q provides for action when the Common Advertisement Code or circulars issued under it are violated.

SEBI may act under Chapter V of the Intermediaries Regulations, applicable provisions of relevant legislation or other SEBI regulations.

It may also direct supervisory bodies to act.

Regulatory Consequences

The notification gives SEBI enforcement powers but does not prescribe one fixed monetary penalty for every type of advertising violation. The consequences in a particular matter will depend on the relevant legal provisions and regulatory action.

Practical Business Consequences

A non-compliant advertisement could also create operational problems, including:

• Additional review and correction of promotional material.
• Withdrawal or interruption of affected campaigns.
• Legal and compliance expenses.
• Reputational concerns.
• Greater internal scrutiny of advertising practices.

These are potential business implications, not automatic statutory penalties.

Restriction During Suspension

Regulation 16L(1)(h) expressly prohibits a suspended regulated entity from issuing advertisements during its suspension, whether directly or indirectly, alone or jointly with another regulated entity.

Businesses should treat this as a distinct regulatory obligation.

What Challenges May Businesses Face During Implementation?

The new code may require organisations to change their advertising review arrangements, particularly where promotional content is produced by several teams or external agencies.

Reviewing Existing Content

A financial company may have promotional material appearing across different channels.

Reviewing advertisements that will remain active after commencement may require coordination between marketing and compliance personnel.

Updating Disclosures

Some advertising materials may require changes to entity information, disclaimers or the way particular claims are presented.

Managing Celebrity Endorsements

Celebrity advertising requires attention to the permitted scope of endorsements, prior approval and expense allocation.

Businesses using such campaigns should consider these matters before publication.

Managing Compliance Costs

The notifications do not prescribe a general compliance review fee.

However, businesses may incur operational expenses for legal review, content revision, staff training and changes to internal procedures. Such costs will vary according to the organisation's existing arrangements.

What Should SEBI-Regulated Businesses Do Next?

Businesses should start by understanding which parts of the code apply to their activities.

A practical compliance review can be organised around the following actions.

• Confirm applicability: Determine whether the organisation is a regulated entity covered by Chapter IIID.
• Identify advertising activities: Review advertisements issued directly or through outside parties.
• Check mandatory information: Examine registration details, entity identification and applicable disclaimers.
• Review promotional claims: Identify misleading statements, prohibited assurances, testimonials and improper performance references.
• Assess influencer campaigns: Check whether the relevant persons meet the celebrity definition and whether prior approval is required.
• Review incentive programmes: Determine whether promotional offers involve prohibited inducements.
• Examine digital interfaces: Assess relevant website and application designs against the dark-pattern prohibition.
• Prepare for unauthorised advertisements: Establish practical internal responsibilities for responding to such incidents.
• Check supervisory requirements: Monitor applicable approval, disclaimer and reporting directions.
• Review ongoing compliance: Keep advertising practices under review as additional official directions are issued.

These steps are recommendations for organising compliance work. They do not create separate statutory filing or certification requirements.

SEBI Advertisement Compliance Checklist

Businesses should keep the distinction clear between obligations expressly stated in the code and recommended internal measures supporting those obligations.

How Can Corpseed Help with SEBI Advertisement Compliance?

For financial businesses, preparing for the Common Advertisement Code is not just about editing a few words in advertisements. The first task is understanding which provisions apply to the organisation, what must change and which requirements need further verification.

Businesses seeking SEBI regulatory compliance services may require support in interpreting the amended regulations and assessing their existing compliance arrangements. Depending on the scope of the engagement and available services, Corpseed can assist with the following areas.

1. SEBI Regulatory Applicability Assessment

Understanding whether a business falls within the specified categories of regulated entities and which advertising requirements apply to its operations.

2. Advertisement Compliance Gap Assessment

Reviewing existing promotional practices to identify potential differences between current arrangements and the applicable regulatory provisions.

3. Regulatory Compliance Advisory

Providing support in understanding SEBI notifications, advertisement restrictions, disclaimer requirements and other relevant provisions.

4. Compliance Documentation Review

Assisting with the review of relevant compliance policies, disclosure practices and supporting documentation.

5. Compliance Preparation

Supporting businesses in identifying practical actions required for regulatory readiness, including areas where further legal review or internal controls may be necessary.

6. Ongoing Regulatory Support

Helping businesses understand subsequent regulatory updates and assess their possible implications for existing operations.

Looking for SEBI regulatory compliance services? Businesses can contact Corpseed to discuss applicability assessment, regulatory compliance consulting and relevant compliance support for their operations.

Key Takeaways

The SEBI Common Advertisement Code 2026 introduces common advertising requirements for specified securities-market intermediaries, mutual funds and asset management companies.

Through two amendments dated 8 October 2026, SEBI has inserted Chapter IIID into the Intermediaries Regulations, 2008, and aligned the relevant provisions of the Mutual Funds Regulations, 2026, with this new chapter.

The rules cover advertisement disclosures, celebrity endorsements, return-related claims, promotional incentives, ratings, dark patterns and unauthorised third-party advertising. For businesses, the priority is to understand which provisions apply and review relevant promotional practices before the commencement date.

The notifications do not require every covered business to obtain a new SEBI registration or a separate advertisement compliance certificate. They establish advertising obligations that must be followed once applicable.