Note: This document is a Press Release announcing a Consultation Paper. It is not a final regulation or circular. No amendment has been enacted.

SEBI has released a Consultation Paper proposing a Common Advertisement Code (CAC) to replace existing entity-specific advertisement frameworks applicable to Stock Brokers, Depository Participants, Investment Advisers, Research Analysts, Online Bond Platform Providers, Portfolio Managers, and Mutual Funds/AMCs. The CAC is proposed to be embedded in the SEBI (Intermediaries) Regulations, 2008.

Key proposals include:

1. Replacement of mandatory prior approval by post-issuance reporting within 24 hours.
2. Permitting use of celebrities for brand-level/entity-level promotion subject to prescribed conditions and prior approval.
3. Replacement of all existing entity-specific and exchange-specific advertisement codes by a single CAC.
4. Permitting regulated entities to advertise ratings and rankings assigned by PaRRVA (Past Risk and Return Verification Agency) subject to prescribed conditions.
5. Revision of the definition of “advertisement” to delineate promotional communications.
6. Provision of an illustrative list of communications not regarded as advertisements and
7. Development of a common digital reporting portal by Supervisory Bodies.