Sebi Introduces Unified Ad Code and Simplifies Investor
Sebi has approved a common advertisement code for market intermediaries, allowing brand-level celebrity promotion while banning specific product
The Securities and Exchange Board of India (Sebi) has approved a unified advertisement code allowing celebrity engagement for brand promotion while banning specific product endorsements, replacing multiple entity-specific frameworks. The regulator also simplified the accreditation process to expand the pool of sophisticated investors eligible for alternative investment funds (AIFs).
Sebi's board approved a Common Advertisement Code for specified regulated entities including stock brokers, mutual fund houses, investment advisers, portfolio managers, depository participants, research analysts, and online bond platform providers. Under the new framework, these entities are permitted to use celebrities for brand-level or entity-level promotion, subject to prior approval and safeguards. Celebrities cannot endorse specific financial products or services.
The common code abolishes mandatory prior approval for most advertisements, requiring only post-issuance reporting within three working days. Prior approval remains necessary only for ads containing celebrity endorsements. This single code will replace the various entity-specific advertisement frameworks previously prescribed under different Sebi regulations and circulars.
Sebi Simplifies and Expands Accredited Investor Framework
Sebi has eased accreditation by introducing a manager-led route, expanding eligibility, and deeming foreign investors as accredited. The new framework aims to simplify the process, reduce verification duplication, and facilitate greater capital mobilisation from sophisticated investors into alternative investment products.
The securities-market exposure criterion now applies more broadly. A Sebi consultation paper stated this criterion alone could expand the pool of eligible accredited investors to around 4 lakh, compared with the existing AIF investor base of around 1 lakh.
| Entity Type | Applicable Net Worth/Income Criterion |
|---|---|
| HUFs, Family Trusts, Sole Proprietorships | Rs 5 crore threshold |
| Body Corporates and Other Trusts | Rs 20 crore criterion |
An additional, optional manager-led accreditation route has been introduced. Managers of AIFs, asset management companies offering specialised investment funds (SIFs), and Sebi-registered portfolio managers will be permitted to accredit investors. The existing route through accreditation agencies will continue. Accreditation through either route is valid for three years and is portable across AIF, SIF, and portfolio management services products within the same group, subject to safeguards.
Persons resident outside India, including foreign portfolio investors, are deemed to be accredited investors. Limited Liability Partnerships are eligible if each partner is an accredited investor.
Sebi Eases Debt Listing and Certification Norms
Sebi approved amendments to remove the mandatory listing of all outstanding unlisted non-convertible debt securities when an issuer lists its debt securities for the first time. Now, an entity is required to list only prospective issuances. This change aims to reduce operational difficulties and costs, encouraging more issuers to access the listed debt market.
The regulator also approved amendments to the certification regulations for securities market professionals. The changes relax the cut-off date for age and experience-based exemptions and allow specified courses and programmes to qualify for certification. The regulations will be renamed the Sebi (Certification of Specified Persons in the Securities Markets) Regulations, 2007.
Sebi Launches Fourth Settlement Scheme for Non-Genuine Trades
Sebi approved a fourth Settlement Scheme, 2026, for entities facing enforcement proceedings related to non-genuine trades in illiquid stock options on the BSE. The scheme covers trades executed between April 1, 2014, and September 30, 2015. It provides eligible entities an opportunity to settle these pending proceedings.
Sebi stated the combined measures are expected to simplify accreditation, reduce duplication in verification, and facilitate greater mobilisation of capital from sophisticated investors into alternative investment products.
