In short: SEBI’s Second Amendment adds a Common Advertisement Code to the Intermediaries Regulations for stock brokers, depository participants, advisers, analysts, mutual funds and similar firms. It would apply from the 180th day after Gazette publication, 7 April 2027 on our count. Celebrity ads would need prior approval from the supervisory body or SEBI.
Key facts
| Authority | Securities and Exchange Board of India (SEBI) |
|---|---|
| Instrument | Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2026, F. No. SEBI/LAD-NRO/GN/2026/323, inserting Chapter IIID (regulations 16G to 16Q) into the Intermediaries Regulations, 2008 |
| Issue date | Notification dated 8 October 2026; Gazette of India Extraordinary No. 608 dated 9 October 2026; posted on sebi.gov.in on 10 October 2026 |
| Effective date | 180th day from Gazette publication. Derived: 7 April 2027 if counted from the Gazette date of 9 October 2026 (6 April 2027 if counted from 8 October). The notification prints no calendar date |
| Applies to | Regulated entities: stock brokers, depository participants, online bond platform providers, investment advisers, research analysts, mutual funds, asset management companies, portfolio managers, and others the Board specifies |
| Status | Final regulations, notified but not yet in force. No corrigendum or later amendment found on sebi.gov.in at 13 October 2026 |
| Official source | https://www.sebi.gov.in/legal/regulations/oct-2026/securities-and-exchange-board-of-india-intermediaries-second-amendment-regulations-2026_105152.html |
| Last verified | 13 October 2026, against the SEBI regulations page, the SEBI-hosted Gazette PDF and the SEBI search listings |
What does the amendment do?
It makes one change: a new Chapter IIID, Common Advertisement Code (regulations 16G to 16Q), in the SEBI (Intermediaries) Regulations, 2008. It covers all advertisements a regulated entity issues about products or services under SEBI’s purview (16H).
Who is a regulated entity?
Regulation 16G(3) names eight types: stock brokers, depository participants, online bond platform providers, investment advisers, research analysts, mutual funds, asset management companies and portfolio managers. SEBI may add others. Each has a named supervisory body (16G(4)).
What counts as an advertisement?
Any communication, endorsement or representation, in any form or channel, issued directly or indirectly by or for a regulated entity to promote or solicit its products or services, or to promote its brand (16G(1)).
Some communications are not advertisements (16J), such as educational content with minimal branding and no call to action, research for existing clients without performance claims, and factual product lists. Anything that promotes or solicits interest is still an advertisement (16J(2)).
Who is a celebrity or influencer?
Under regulation 16G(2), a person is a celebrity if any one test applies:
-
Rankings and roles
Top 50 in a national publication’s celebrity index (at most one year old); or a lead role in a mainstream film, TV or OTT series.
-
Influencers
Followers above the Advertising Standards Council of India threshold on any one platform; or a virtual (computer-generated) influencer.
-
Sports and TV
A national or international sportsperson; a TV host for at least one season or 10 episodes; a winner or runner-up of a prominent TV or OTT competition.
-
Board view
Anyone the Board or supervisory body considers influential.
A founder, promoter, director, key managerial person or senior management person of the issuing entity is not a celebrity when appearing in its advertisement (proviso to 16G(2)).
What must advertisements do, and not do?
Do (16I, 16L, 16N):
-
Identify the firm
Name, SEBI registration number, logo (if any) and specified disclaimers; a hyperlink suffices for SMS and push messages (16I).
-
Be clear
True, fair, accurate, complete, unambiguous and free of heavy jargon (16L(1)).
-
Label examples and data
Example securities need the disclaimer “The securities or scheme(s) are quoted as an example and not as a recommendation” on the same page or frame; statistics and charts need a source and date (16L(1)(e), (f)).
-
Use ratings carefully
Only Past Risk and Return Verification Agency ratings, explained, stated as one factor only, from a study covering the whole category (16N).
Don’t (16L, 16M, 16O):
-
Promise returns
No guaranteed, risk-free, indicative or fixed returns (online bond platforms and others SEBI specifies are excepted from the fixed-return ban); no hint that past performance may recur (16O(b), (c), (h), (i)).
-
Mislead or disparage
No false, exaggerated or biased content, assumptions, projections or testimonials; no disparaging others or misleading comparisons; no vague words such as “high yield” (16O(a), (d), (e), (k)).
-
Misuse symbols
No SEBI or market infrastructure institution logos or images unless permitted (16O(g)).
-
Induce or trick
No incentives, vouchers, coupons or tokens to induce trading or app downloads (16L(1)(g)); no dark patterns in Annexure I of the 2023 CCPA guidelines (16M); no advertising while suspended (16L(1)(h)).
Who is responsible for celebrity endorsements?
The duties fall on the regulated entity; in the text we read, none falls separately on the celebrity. Under 16K the entity would have to ensure that:
- Endorsement stays at brand or entity level.Product names may appear, but no inducement or claim about a specific product (16K(1), (2)).
- Prior approval is obtained.Approval comes from the supervisory body, or the Board if none is specified (16K(3)).
- Costs are not passed onTo clients or a mutual fund scheme (16K(4)).
- Disclaimers are includedAs specified (16K(5)).
Other duties and a related proposal
If a third party runs an advertisement without the entity’s consent, the entity must act, including legally, within seven days of learning of it, tell the supervisory body and disclose the incident on its website (16L(2)). Reporting rules would follow (16P).
Separately, a SEBI consultation paper of 21 August 2026 proposes a revised code for online bond platform providers. It is a proposal only.
Dates and status
Derived date: 7 April 2027 (9 October 2026 plus 180 days). The notification does not print it.
Regulation 2 starts the regulations on the 180th day from publication in the Official Gazette. We use the Gazette date (Extraordinary No. 608, 9 October 2026), not the 8 October notification date or the 10 October web posting. Count: 22 days to 31 October, then 30, 31, 31, 28 and 31 to 31 March make 173; 7 more reach 7 April 2027. From 8 October it would be 6 April.
What should firms do next?
Practical advice, not requirements:
- Map advertising channelsAnd sign-offs.
- Test celebrity and influencer contractsAgainst 16G(2).
- Review incentives and return language.
Frequently asked questions
Who is covered by the SEBI Common Advertisement Code?
Regulated entities as defined in regulation 16G(3): stock brokers, depository participants, online bond platform providers, investment advisers, research analysts, mutual funds, asset management companies and portfolio managers, plus others SEBI specifies.
When would the Code apply?
From the 180th day after publication in the Official Gazette (regulation 2). We derive 7 April 2027 from the Gazette date of 9 October 2026. The notification does not print a calendar date, so confirm the count if you rely on it.
Who counts as a celebrity under the Code?
Regulation 16G(2) lists eight tests, including top 50 in a celebrity index, a lead screen role, an influencer above the ASCI follower threshold, national or international sportspersons, TV hosts, competition winners, virtual influencers, and anyone the Board or supervisory body considers influential.
Do celebrity advertisements need approval?
Yes. Regulation 16K(3) says any advertisement featuring a celebrity is issued only with prior approval from the supervisory body, or from the Board if no such body is specified for the entity.
Sources (official, verified 13 October 2026)
- SEBI, Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2026, regulations page dated 10 October 2026 https://www.sebi.gov.in/legal/regulations/oct-2026/securities-and-exchange-board-of-india-intermediaries-second-amendment-regulations-2026_105152.html
- SEBI-hosted Gazette of India Extraordinary No. 608, 9 October 2026 (PDF) https://www.sebi.gov.in/sebi_data/attachdocs/oct-2026/1791796362093.pdf
- SEBI, Consultation paper on revision of Advertisement Code for Online Bond Platform Providers (OBPPs), 21 August 2026 https://www.sebi.gov.in/reports-and-statistics/reports/aug-2026/consultation-paper-on-revision-of-advertisement-code-for-online-bond-platform-providers-obpps-_103863.html
- India
- SEBI
- Common Advertisement Code
- Celebrity endorsements
- Intermediaries Regulations 2008
- Mutual funds
- Investment advisers
Book a demo to see how each regulatory change becomes an executable action list, with immediate, safer compliance as well.
Agentic AI Built Exclusively for BFSI
Neurasix delivers rule-aligned agentic workflows – from regulatory intelligence to audit-ready outputs