MUMBAI: Markets regulator Sebi is proposing a common advertisement code for all its regulated entities. Under the new code, even individual mutual funds will be allowed celebrity endorsement at the brand level, an option not allowed currently. At present AMFI as the industry trade body could use such endorsements for the MF industry as a whole. Sebi, however, said that the regulated entities will not be allowed celebrity endorsement for specific products, meaning a fund house won’t be allowed to advertise a celebrity endorsing say its flexicap fund but can endorse the fund house as a whole. Such endorsements will be “subject to prescribed conditions and prior approval,” Sebi said.Sebi’s consultation paper also said that instead of the current system of pre-advertisement approval from the regulator, entities would now be required to file post-advertisement reports with it. The regulator is also proposing a unified, technology-enabled advertisement framework to balance ease of doing business with investor protection, a Sebi release said. This consultation paper proposed a Common Advertisement Code (CAC) “to replace the existing fragmented, 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 release said. Under the unified, tech-enabled platform, Sebi is proposing a common reporting platform for regulated entities with multiple supervisory bodies for advertisement reporting by regulated entities. “The unified reporting mechanism is expected to bring in operational efficiency along with regulatory oversight,” the release said.
