SEBI (Mutual Funds) (Second Amendment) Regulations, 2026: Mutual Fund Advertisements Now Governed by Common Advertisement Code
Overview of the Amendment
The Securities and Exchange Board of India has issued a fresh set of amendments to the regulatory framework governing mutual funds, specifically targeting how mutual fund advertisements are regulated. Through Notification No. SEBI/LAD-NRO/GN/2026/324 dated 8 October 2026, SEBI notified the Securities and Exchange Board of India (Mutual Funds) (Second Amendment) Regulations, 2026, bringing about a significant structural shift in how advertising norms apply to mutual funds and asset management companies (AMCs).
The core thrust of this amendment is straightforward: mutual fund advertising, which was previously governed by a standalone schedule embedded within the Securities and Exchange Board of India (Mutual Funds) Regulations, 2026, will now fall under the Common Advertisement Code established through Chapter IIID of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008. This brings mutual funds in line with the broader universe of SEBI-regulated entities, all of whom will now operate under a single, unified advertising framework.
Important: These amendments shall come into force on the 180th day from the date of publication in the Official Gazette. Mutual funds and AMCs must ensure full compliance with the Common Advertisement Code by that effective date.
Background and Regulatory Context
For some time, SEBI had been working toward rationalising the advertising rules applicable across different categories of regulated intermediaries. The multiplicity of advertisement codes — each specific to a category of entity — had created an uneven regulatory landscape. SEBI addressed this through the development of a Common Advertisement Code housed within the SEBI (Intermediaries) Regulations, 2008.
Prior to this amendment, mutual fund advertising obligations were governed by the Fifth Schedule of the SEBI (Mutual Funds) Regulations, 2026, which set out a separate code for promotional communications by mutual funds and AMCs. The amendment removes this parallel framework entirely and redirects the regulatory reference to the common code applicable across intermediaries.
SEBI had earlier floated a consultation paper proposing the harmonisation of advertisement rules, and subsequently, the Board memorandum outlined proposed consequential changes to mutual fund-specific advertising provisions. The Second Amendment Regulations give formal legislative effect to those proposals insofar as they relate to mutual funds.
The principal SEBI (Mutual Funds) Regulations, 2026 were originally published in the Gazette of India on 15 January 2026 vide Notification No. SEBI/LAD-NRO/GN/2026/294. The first set of amendments were notified on 7 July 2026 through Notification No. SEBI/LAD-NRO/GN/2026/307. The present notification constitutes the second amendment to these regulations.