The Securities and Exchange Board of India (Sebi) has proposed a new Common Advertisement Code that would permit mutual funds, stock brokers, and investment advisors to use celebrities for brand promotion, while strictly prohibiting endorsements of specific investment products.
The regulatory move seeks to standardize advertising practices across the financial services sector.
Under the proposed framework, prior approval for advertisements would be eliminated, shifting the compliance burden to the entities themselves.
The distinction between brand awareness and product-specific solicitation is central to the proposal, aiming to prevent high-profile figures from implicitly guaranteeing returns on particular funds or schemes.
This development follows a broader trend of regulatory tightening around financial marketing in India.
The goal is to enhance investor protection by ensuring that celebrity influence is not leveraged to obscure the risks associated with specific financial instruments.