Overview
- SEBI published a consultation paper on June 23–24, 2026 that would replace multiple entity-specific rules with one Common Advertisement Code covering mutual funds, brokers, advisers, analysts, portfolio managers and online bond platforms.
- The draft treats social media finfluencers and AI-generated virtual avatars as 'celebrities' when an account has more than 5 lakh followers or meets other influence criteria, which would subject them to special endorsement rules.
- Most advertisements would no longer need pre-clearance and would instead be uploaded to a central portal within 24 hours of publication for post-issuance supervision by supervisory bodies and exchanges.
- Celebrity ads would still require prior approval and be limited to brand- or entity-level promotion, while the code also bans dark patterns, assured-return claims, misleading testimonials, unfair comparisons and certain incentive-driven promotions.
- The consultation is open for public comment until July 14, 2026, and SEBI proposes PaRRVA verification of ratings and past-performance claims and a six-month transition if the board approves the final code.