SEBI's amendment adds a common advertisement code for mutual funds, AMCs and six other kinds of regulated entity. It takes effect 180 days after gazette publication, about 7 April 2027. The code governs how funds advertise, not market levels: the Nifty 50 closed at 23,053.10 on 30 Oct 2026.
The text is the Securities and Exchange Board of India (Intermediaries) (Second Amendment) Regulations, 2026, notification SEBI/LAD-NRO/GN/2026/323, dated 8 October 2026. It applies to stock brokers, depository participants, online bond platform providers, investment advisers, research analysts, mutual funds, asset management companies and portfolio managers, and to other entities the Board may specify, so fund advertisements must follow the code from that date.
What the amendment adds
The amendment inserts Chapter IIID, titled Common Advertisement Code, with regulations 16G to 16Q, into the Intermediaries Regulations, 2008. The key rules for mutual fund advertisements are below, with the regulation numbers from the gazette text.
| Rule | What the code says | Regulation |
|---|---|---|
| Scope | Applies to advertisements issued by a regulated entity, including mutual funds and AMCs, for products or services under SEBI's purview | 16G, 16H |
| Basic disclosures | Entity name, SEBI registration number and logo, plus the disclaimers the Board specifies | 16I |
| Statistics and charts | Must name the source and show the date or period they relate to | 16L(1)(f) |
| Example schemes | The line "quoted as an example and not as a recommendation" must sit on the same page or frame | 16L(1)(e) |
| Ratings and rankings | Only ratings from a Past Risk and Return Verification Agency, with its methodology shown and a note that the rating is one factor only | 16N |
| Celebrity endorsement | Needs prior approval from the supervisory body or SEBI; its cost cannot be passed to clients or charged to a scheme | 16K |
| Prohibited content | No misleading or projection-based content, no assured or fixed return promise, no claim that past performance may recur, no vague "high returns" wording | 16O |
| Not an advertisement | Educational content without a promotional call to action, replies to client requests, factual product lists and essential regulatory notices | 16J |
Source: SEBI (Intermediaries) (Second Amendment) Regulations, 2026, regulations as shown. Checked on 26 October 2026.
Try it: SIP Calculator takes a monthly amount, an assumed rate and a number of years, and shows the invested amount, returns and corpus. The result is an estimate at the rate you enter.
Who it affects
Fund houses and AMCs that issue advertisements in print, broadcast, digital and outdoor media, including websites, social media and streaming services (regulation 16G). The code also applies to advertisements issued by or on behalf of the regulated entity. If a third party advertises a fund without consent, the entity must start action within seven days of learning of it and tell its supervisory body (regulation 16L(2)).
Investors reading fund advertisements will see more of the source, date and disclaimer details that the code requires, once it is in force.
What to do when you read a fund advertisement
- Check that the ad names the entity, its SEBI registration number and the disclaimers the Board specifies (regulation 16I).
- Look for a source and a date under any chart or statistic, which the code requires once it is in force (regulation 16L(1)(f)).
- Read any example scheme line for the "not as a recommendation" wording on the same page as the scheme (regulation 16L(1)(e)).
- Treat a rating or ranking as meaningful only when the ad names the verification agency and where its method is published (regulation 16N).
A labelled SIP example, for arithmetic only
Regulation 16O(a) bars advertisements based on assumptions or projections, so a projected SIP value of the kind below is not something an advertisement can show under the code. This article is an explainer, and the example uses round, assumed numbers. It shows the arithmetic of the formula the SIP Calculator uses. It is not a fund return or a forecast. The Mutual Fund Returns Calculator takes SIP or lumpsum inputs and shows XIRR or CAGR, and our AMFI SIP contributions post covers the industry's September 2026 monthly SIP total.
Worked example: Rs 7,500 a month for 10 years at an assumed 10 percent a year. Calculation only, not a forecast. Source: SIP formula used in the SIP Calculator.
| Step | Working | Value |
|---|---|---|
| Monthly SIP | labelled example input | Rs 7,500 |
| Assumed annual return | assumption, not a forecast | 10 percent |
| Monthly rate i | 10 / 12 / 100 | 0.00833333 |
| Number of instalments n | 10 x 12 | 120 |
| Total invested | 7,500 x 120 | Rs 9,00,000 |
| Value after 10 years | P x [((1+i)^n - 1) / i] x (1+i) | Rs 15,49,140 |
| Growth on the assumption | value minus invested | Rs 6,49,140 |
Example figures, not today's rates.
Value Amount invested
Invested Rs 9,00,000Value after 10 years Rs 15,49,140
What has not changed
The amendment text we read covers how advertisements are made and what they must contain. It sets no SIP amount, no fund return and no market level. Until the amendment takes effect, it is not in force.
