The Securities and Exchange Board of India (SEBI) released a consultation paper on June 23, 2026, proposing a Common Advertisement Code (CAC) to replace separate advertising rules for seven types of market intermediaries. The draft code treats financial influencers (finfluencers) and AI avatars as celebrities under advertising regulations. Comments on the proposal are open until July 14, 2026, according to medianama.com.
The proposed CAC would apply to stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds, including asset management companies. It aims to unify advertising rules across these entities and expand the definition of advertisements to include print, broadcast, digital, outdoor media, podcasts, streaming services, social media, and online news sites. The draft removes the requirement for prior approval of most ads, replacing it with a 24-hour post-publication reporting system via a central portal.
Under the new framework, supervisory bodies such as stock exchanges, depositories, and the Association of Mutual Funds in India (AMFI) would monitor advertisements after they are published and flag any violations to SEBI. This approach contrasts with the current system, where brokers, bond platforms, advisers, and analysts must obtain sign-off before running ads. The code also bans dark patterns in advertising, aiming to protect investors from misleading promotions.
The consultation paper is open for public comments until July 14, 2026, after which SEBI will review feedback before finalizing the Common Advertisement Code. The draft is accessible on SEBI’s website, marking a significant step in regulating financial advertising in India.