The Securities and Exchange Board of India (Sebi) on Tuesday proposed new advertising rules permitting stock brokers, mutual fund companies, investment advisors, and portfolio managers to use celebrities for promoting their brand names but not specific investment products or services. This proposal is part of a Common Advertisement Code (CAC) aimed at standardizing advertising regulations for all Sebi-regulated entities, according to livemint.com.
The new rules under the CAC seek to create a single set of advertising guidelines, eliminating the need for prior approval of advertisements and enabling post-issuance monitoring. Sebi’s move aims to simplify compliance for financial entities by allowing celebrity endorsements only at the brand level, not for individual products or services. This approach intends to reduce misleading promotions while maintaining promotional flexibility, as reported by thehindubusinessline.com.
This development follows growing concerns about the influence of celebrity endorsements on investment decisions and the need for consistent regulatory oversight. By restricting endorsements to brands rather than specific products, Sebi aims to protect investors from potentially biased or exaggerated claims. The new code aligns with efforts to enhance transparency and accountability in financial advertising, marking a significant regulatory step in the Indian financial market landscape, according to livemint.com.
Sebi’s Common Advertisement Code proposal was announced on June 23, 2026, and is expected to undergo further review before implementation. The regulator’s next steps include inviting public comments and finalizing the code to ensure uniform advertising standards across all Sebi-regulated entities.