The Securities and Exchange Board of India (SEBI) has finalized a Common Advertisement Code that requires prior approval for advertisements featuring celebrities, including social media influencers and AI-generated virtual influencers. The code, approved by SEBI's board on September 24 and published in the Gazette of India on October 9, will take effect 180 days later in April 2027, covering stock brokers, mutual funds, investment advisers, and other market intermediaries, according to medianama.com.
The new code replaces separate advertising rules previously issued by SEBI and other supervisory bodies for seven categories of regulated entities. It mandates that each entity’s supervisory body approve celebrity ads before publication and review other ads after they are published. Despite objections during public consultation, including concerns about the feasibility of reviewing ads at digital scale, SEBI retained the pre-approval and post-publication reporting requirements. The code applies to stock exchanges for stock brokers and online bond platforms, depositories for depository participants, and respective supervisory bodies for investment advisers and research analysts, medianama.com reported.
This unified advertising code marks a shift towards stricter regulation of promotional content in India's financial markets, especially concerning influencer marketing and AI-generated content. By consolidating rules and enforcing pre-approval, SEBI aims to enhance transparency and accountability in advertisements related to financial products and services. The move aligns with global trends where regulators increasingly scrutinize digital and influencer advertising to protect investors and maintain market integrity, medianama.com noted.
The Common Advertisement Code will come into force in April 2027, 180 days after its publication in the Gazette of India on October 9. SEBI’s board memorandum details the implementation framework, with supervisory bodies designated to oversee compliance within their respective sectors, medianama.com stated.