The Securities and Exchange Board of India (Sebi) has replaced a patchwork of advertising rules for financial intermediaries with a single common code, redrawing what brands can do with celebrity faces.
What the common ad code changes
At its board meeting on Thursday, Sebi approved a Common Advertisement Code for specified regulated entities: stock brokers, depository participants, investment advisers, research analysts, online bond platform providers, portfolio managers, and mutual funds or asset management companies.
- Celebrities may promote a regulated entity’s brand or name, subject to prior approval and safeguards.
- Celebrities cannot endorse specific financial products or services.
- Mandatory prior approval for advertisements is abolished, except where celebrity endorsements are involved.
- Non-celebrity ads will follow post-issuance reporting within three working days.
- The common code replaces entity-specific frameworks under Sebi regulations, master circulars and directions.
Why this matters for marketers
For financial marketers, the decision separates brand fame from product selling. A celebrity can lend recall and trust to a mutual fund house or brokerage’s name, but the moment the communication moves to a specific fund, plan, or advisory service, the celebrity must step back.
That is a meaningful shift from a system where different intermediary categories carried different advertisement rules. One code lowers interpretation risk and makes campaign planning simpler across distribution and investment entities. It also places a clear compliance step around celebrity talent: get prior approval before the shoot, and report other campaigns after they go live.
Accredited investor pool widens
In the same meeting, Sebi expanded the accredited investor framework. Individuals with securities market assets of ₹5 crore can now qualify, while body corporates need ₹20 crore in securities market assets. The threshold extends to HUFs, family trusts and sole proprietorships at ₹5 crore, and to other trusts at ₹20 crore.
Sebi also added an optional manager-led accreditation route through alternative investment fund managers, AMCs offering specialised investment funds, and Sebi-registered portfolio managers. Foreign portfolio investors and non-residents will be deemed accredited, and accreditation remains valid for three years.
For investment product marketers, the wider pool signals more eligible investors for AIFs and PMS products, and a simpler verification path that may reduce friction at the top of the funnel.
Sebi separately cleared a fourth Settlement Scheme, 2026 for certain illiquid stock option trades on BSE between April 1, 2014 and September 30, 2015, and eased debt listing rules so issuers list only prospective non-convertible debentures.
Source: ETBrandEquity.com
